Overview
Latch Inc. has agreed to a $1.95 million settlement to resolve a class action lawsuit concerning alleged violations of federal securities laws. The lawsuit claims the company’s June 2021 merger registration statement with TS Innovation Acquisitions Inc. included false or misleading statements about Latch’s business operations and revenue practices.
Investors who purchased Latch Inc. common stock through that registration statement may be eligible for compensation.
Who Is Eligible?
To qualify, class members must:
- Have been stockholders of pre-merger Latch Inc. (Legacy Latch)
- Have purchased or acquired Latch Inc. common stock through the registration statement connected to the June 4, 2021 merger with TS Innovation Acquisitions Inc.
- Have experienced financial loss as a result of acquiring these shares
Investors who acquired shares indirectly (e.g., through mutual funds) are not eligible unless they held the shares directly in their own name or brokerage account. If shares were received by gift or inheritance, the claim is valid only if the original holder was eligible and has not already filed a claim.
What Can Eligible Investors Receive?
Payments will be distributed on a pro rata basis from the $1.95 million settlement fund. The amount each claimant receives depends on:
- The number of valid claims
- The number of Latch shares acquired
- Whether and when those shares were sold or held
Recognized Loss Calculation:
- Shares sold before January 11, 2023: Loss is calculated as $10 minus the sale price
- Shares held on January 11, 2023: Loss is calculated at $9.06 per share
The total payout for each claimant is based on the percentage of their recognized loss in relation to the total recognized losses of all valid claimants. The final amount received will be proportional after deducting legal fees, costs, and administrative expenses.
Minimum payout is $10. Claims calculated at less than this amount will not be paid.
How to File a Claim
Claims can be filed in two ways:
- Online, by submitting a completed claim form via the official settlement website
- By mail, using a printed PDF claim form
Mailing Address for Claims:
RG/2 Claims Administration LLC
P.O. Box 59479
Philadelphia, PA 19102-9479
Class members who submit a valid claim will receive a confirmation postcard within 60 days. If not received, contact the administrator at 1-866-742-4955.
Documentation Required
To support your claim, you must include documentation showing:
- Dates and amounts of Latch Inc. common stock purchases
- Number of shares acquired
- Sale dates and prices, if applicable
- Number of shares held as of January 10, 2023
Acceptable documents include brokerage confirmations, account statements, or trade confirmations.
Payment Method
- Payments will be made via paper check
Settlement Fund Breakdown
The $1.95 million fund will be used as follows:
- Settlement administration costs: Up to $185,000
- Attorneys’ fees: Up to $650,000
- Attorneys’ expenses: Up to $40,000
- Service award to lead plaintiff: Up to $10,000
- Remaining funds will be distributed to eligible class members
Key Dates
- Claim filing deadline: November 10, 2025
- Objection deadline: November 18, 2025
- Final approval (fairness) hearing: December 9, 2025
Payment Timeline
Payments will be distributed after the court grants final settlement approval and any appeals are resolved.
Reason for the Settlement
The lawsuit alleged that Latch Inc. and other defendants misled investors by including false or omitted information in the registration statement for the June 2021 merger, particularly regarding revenue recognition practices and key business metrics.
Latch and the other defendants deny all wrongdoing but agreed to settle to avoid further litigation costs and risks.
Additional Information
For complete details, visit the settlement website or refer to the:
Status: Open for Claims
Award: Varies based on shares acquired and held
Deadline to File: November 10, 2025
