Latch’s Leaders Breached Duty Via Misleading Metrics, Suit Says

Latch Inc. executives and directors overstated the “smart lock” technology company’s revenue and misrepresented its financial controls, an investor says in a derivative suit filed Wednesday.

As a result of their actions, “Latch disseminated improper, public statements concerning Latch’s operations, prospects and internal controls,” Eric Manley says in the complaint, filed in the US District Court for the Southern District of New York. “This misconduct has devastated Latch’s credibility,” he says. Latch will have to spend money on legal defense, financial restatements, and an internal investigation, he said.

The suit echoes a proposed investor class action filed Jan. 11, alleging ...