LegalJul 30, 2026, 06:16 AM
Latch Derivative Lawsuit Settlement Preliminarily Approved
AI Summary
Latch, Inc. announced that the U.S. District Court for the Southern District of New York has granted preliminary approval for the proposed settlement of consolidated derivative actions. The lawsuit alleged breaches of fiduciary duties and false statements regarding the company's financial metrics, leading to a restatement of financial statements. The settlement includes the implementation of corporate governance reforms for at least three and a half years and a payment of $450,000 for plaintiffs' attorneys' fees and expenses.
Key Highlights
- U.S. District Court granted preliminary approval for settlement of consolidated derivative actions.
- Lawsuit alleged breach of fiduciary duties and false statements regarding financial metrics.
- Settlement includes corporate governance reforms to be maintained for at least 3.5 years.
- Latch and/or its insurance carriers will pay $450,000 in attorneys' fees and expenses.
- Plaintiffs' counsel may apply for service awards of up to $2,000 for each of two plaintiffs.
- A settlement hearing is scheduled for October 6, 2026, to consider final approval.
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