Latch Inc. Misrepresented Itself Pre-Merger, Investor Says (1)

“Smart lock” technology company Latch Inc.'s registration and prospectus before its 2021 merger with a special purpose acquisition company misrepresented “nearly every” important aspect of its business, an investor alleges on behalf of a proposed class.

The disclosures “were not just marginally flawed, but affirmatively false and misleading,” shareholder Scott Schwartz says. He filed his complaint Wednesday in the US District Court for the District of Delaware, naming the company and 13 members of its leadership as defendants.

“The result has been a financial catastrophe and the Company’s stock price has plummeted,” Schwartz says. It traded at about $10 at ...