NEW YORK, Sept. 07, 2022 (GLOBE NEWSWIRE) — The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed on behalf of those who acquired Latch in the U.S. District Court for the Southern District of New York. Inc. (“Latch” or the “Company”) (NASDAQ: LTCH, LTCHW) Securities from May 13, 2021 to August 25, 2022, both dates inclusive (the “Collection Period”). Investors have until October 31, 2022 to apply to the court to be named lead plaintiff in the lawsuit.

Latch is a technology company specializing in keyless entry security systems for opening and managing doors in residential buildings from a smartphone.

On August 25, 2022, Latch announced a material accounting adjustment in a Form 8-K filed with the SEC. The company cited material errors and possible irregularities relating, among other things, to the way it has recognized revenue related to the sale of hardware devices since its shares were listed on NASDAQ. Specifically, Latch noted that “the Audit Committee has determined that 2021 and Q1 2022 statements will be restated” and “based on the preliminary findings of the investigation, certain revenue recognition errors as a result of undisclosed sales agreements as a result of sales activity not having occurred.” was consistent with the Company’s internal controls and procedures.” As a result of this news, the price of Latch’s shares fell $0.14 per share, or approximately 12.96%, from $1.08 per share to a closing price of $0.94 on August 26, 2022.

The Complaint alleges that during the Class Period, the Defendants made false and/or misleading statements and/or failed to disclose the following: (1) there were undisclosed hardware device sales agreements; (2) as a result, the Company had incorrectly recognized revenue throughout fiscal year 2021 and the first quarter of 2022; (3) there were material weaknesses in Latch’s internal control over financial reporting related to revenue recognition; (4) as a result of …