Legal Brief: Latch Faces Class Action
October 13, 2022
Security Business Magazine
Types : Bylined Articles
Potential securities law violations have the access control manufacturer under the microscope
As a lawyer, I am often contacted by recruiters soliciting me to move my law practice to another law firm. Sometimes, well-intentioned recruiters pitch me with exciting opportunities for a “securities” lawyer like me. Inevitably, I correct their misapprehension – clarifying that I am a “security” lawyer, not a “securities” lawyer. Big difference.
Yet, sometimes these two worlds collide – as is the case in a recent class action lawsuit filed against security company Latch Inc. for alleged securities law violations.
Latch is a technology company that specializes in keyless entry security systems to open and manage doors in apartment buildings from a smartphone. In June 2021, Latch became a public company and was listed on the NASDAQ trading platform under symbol LTCH. As a public company, Latch is subject to federal and state securities laws – which, among other things, require regular disclosures about the company’s financial condition.