Latch Inc. $1.95M Securities Class Action Settlement

Stockholders of premerger Latch Inc. (Legacy Latch) who acquired Latch Inc. common stock through the registration statement filed for the June 4, 2021 merger with TS Innovation Acquisitions Inc. may be eligible to claim a cash payment from a class action settlement.

Latch Inc. agreed to pay $1.95 million to resolve a class action lawsuit alleging violations of federal securities laws. The lawsuit claims the registration statement for the June 2021 merger contained false or misleading statements and omissions about Latch’s business and revenue recognition practices.

Who can file a claim?

Class members must meet the following criteria:

• They were a stockholder of pre-merger Latch Inc. (Legacy Latch).
• They purchased or otherwise acquired Latch Inc. common stock pursuant to the registration statement filed in connection with the June 4, 2021, merger with TS Innovation Acquisitions Inc.
• They suffered damages as a result of acquiring these shares.

If a class member's mutual fund or another investment vehicle acquired Latch stock, they are not automatically a class member unless they directly held the shares in their own name or account.

Those who received shares by gift or inheritance may only claim if the original owner would have been eligible and does not file a claim for those shares.

How much can class members get?

Pro rata payment: The total settlement fund is $1,950,000. The amount each class member can receive depends on several factors, including the number of valid claims submitted, the number of shares each claimant acquired and when they sold or held those shares. The settlement administrator distributes the shares on a pro rata basis, meaning it divides the fund among all valid claimants based on their recognized loss.

The settlement administrator will calculate recognized loss as follows:

• For each share sold before Jan. 11, 2023: $10 minus the sale price
• For each share held on Jan. 11, 2023: $9.06 per share

The settlement administrator will determine the actual payout per claimant by dividing each claimant’s recognized loss by the total recognized losses of all claimants then multiplying by the net settlement fund (after deductions for fees, expenses and taxes).

If, after calculations, a claimant’s award is less than $10, they will not receive payment.

How to claim a settlement payment

Eligible class members can file a claim online or download the PDF claim form to complete and mail to the settlement administrator.

Settlement administrator's mailing address: RG/2 Claims Administration LLC, P.O. Box 59479, Philadelphia, PA 19102-9479

The settlement administrator will mail a claim acknowledgement postcard to class members who submit valid claims within 60 days of claim receipt. Those who do not receive an acknowledgment postcard within 60 days should call the administrator toll-free at 1-866-742-4955.

Is proof or documentation required to submit a claim?

Yes, claimants must provide documentation to support their claim. This includes:

• Copies of broker confirmations or other documentation showing transactions in Latch Inc. common stock
• Documentation of the number of shares acquired, dates of acquisition, sale dates and prices, and number of shares held on Jan. 10, 2023

Payout options

• Paper check

$1.95 million settlement fund breakdown

The $1,950,000 settlement fund includes:

• 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
• Payments to eligible class members: Remainder of the fund

Important dates

• Fairness hearing: Dec. 9, 2025
• Deadline to file a claim: Nov. 10, 2025
• Deadline to object: Nov. 18, 2025

When is the Latch Inc. securities settlement payout date?

The settlement administrator will issue payments after it resolves any appeals and the court grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged Latch Inc. and other defendants made materially false or misleading statements and omissions related to key business metrics and revenue recognition practices in the registration statement it filed for the June 2021 merger with TS Innovation Acquisitions Inc.

The defendants deny any wrongdoing but agreed to settle to avoid the burden, expense and uncertainty of further litigation.

Sources

1. Class notice
2. Claim form
3. Settlement agreement