DelistedReal Estate

What Happened to Latch?

Ticker: LTCHSPAC Year: 2021Merger: 2021

Return

-100.0%

Current Price

$0

Peak Price

$17.78

Trust Size

$450M

Summary

Smart access/lock company for apartment buildings. Tishman Speyer SPAC deal. Delisted in 2023 after restating financials and SEC investigation.

What Happened

Latch merged with TS Innovation Acquisitions Corp (Tishman Speyer real estate) in June 2021. The company makes smart locks and building access systems for multifamily apartments. Initially seemed solid — sticky B2B product, recurring revenue from SaaS. But Latch had to restate 2 years of financial results after discovering revenue recognition errors. The SEC launched an investigation. The CFO was fired. The stock was delisted from NYSE for failure to file timely financials. Investors lost everything.

Key People

Luke SchoenfelderCEO & Co-founder— Stepped down amid crisis
Rob SpeyerSPAC Sponsor— Tishman Speyer president, leveraged real estate connections

Timeline

2021-01

SPAC merger announced

2021-06

Merger completed

2022-08

Financial restatement announced

2023-01

CFO fired, SEC investigation

2023-06

Delisted from NYSE

Risk Indicators

🏛ïļ SEC Action⚖ïļ Class Action Lawsuit