# Latch, Inc. (LTCHW) — bankruptcy [rumored]
Source: SEC API (secapi.ai) · situation sit_94d81e4a0b20c5144dc4 · retrieved 2026-08-11T16:14:20.075Z

## Overview
Latch, Inc. is a hardware and smart access control company that provides connected entry solutions; it experienced accounting irregularities requiring restatement of financial statements for periods from May 2021 through August 2022.

On July 20, 2026, the U.S. District Court for the Southern District of New York granted preliminary approval of a settlement in the consolidated derivative action *In re Latch Inc. Derivative Litigation* (Case No. 1:23-cv-01273-JGK). The settlement, agreed to in principle in March 2026, resolves claims that directors and officers breached fiduciary duties by making false and misleading statements regarding the company's financial metrics (Revenue, Total Bookings, and Total Annual Recurring Revenue) from May 13, 2021 through August 25, 2022, which required restatement of financial statements. Under the settlement, Latch will adopt and maintain corporate governance reforms for at least 3.5 years from the effective date, including establishing a Lead Independent Director, creating a management-level Disclosure Committee, requiring executive sessions of independent directors at least three times per year, and conducting annual training on financial reporting. The company and/or its insurance carriers will pay $450,000 in attorneys' fees and expenses to plaintiffs' counsel, subject to court approval, with service awards of up to $2,000 each for the two plaintiffs to be paid from this amount. The settlement hearing is scheduled for October 6, 2026.

## Terms
- Counterparty: Plaintiffs Eric Manley and Daniel Gottlieb; Individual Defendants Luke Schoenfelder, Garth Mitchell, Barry Schaeffer, Raju Rishi, J. Allen Smith, Peter Campbell, Patricia Han, Robert Speyer, and Andrew Sugrue · Deal value: $450,000 · Consideration: cash

## Key dates
- Expected close 2026-10-06

## Timeline
- 2026-07-30 · 8-K (0001104659-26-088410): 8-K - Latch, Inc. — *Latch, Inc. is a hardware and smart access control company that provides connected entry solutions; it experienced accounting irregularities requiring restatement of financial statements for periods from May 2021 through August 2022.* On July 20, 2026, the U.S. District Court for the Southern District of New York granted preliminary approval of a settlement in the consolidated derivative action *In re Latch Inc. Derivative Litigation* (Case No. 1:23-cv-01273-JGK). The settlement, agreed to in principle in March 2026, resolves claims that directors and officers breached fiduciary duties by making false and misleading statements regarding the company's financial metrics (Revenue, Total Bookings, and Total Annual Recurring Revenue) from May 13, 2021 through August 25, 2022, which required restatement of financial statements. Under the settlement, Latch will adopt and maintain corporate governance reforms for at least 3.5 years from the effective date, including establishing a Lead Independent Director, creating a management-level Disclosure Committee, requiring executive sessions of independent directors at least three times per year, and conducting annual training on financial reporting. The company and/or its insurance carriers will pay $450,000 in attorneys' fees and expenses to plaintiffs' counsel, subject to court approval, with service awards of up to $2,000 each for the two plaintiffs to be paid from this amount. The settlement hearing is scheduled for October 6, 2026.
  https://www.sec.gov/Archives/edgar/data/1826000/0001104659-26-088410.txt

## Citations
- 0001104659-26-088410 — https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&type=&dateb=&owner=include&count=40&search_text=000110465926088410