SEC settlement follows the filing of seven years of financial statements and resolution of four shareholder lawsuits; Company refocuses fully on profitability.
ST. LOUIS, Oct. 1, 2026 /PRNewswire/ -- DOOR (OTC: LTCH), today announced that the Securities and Exchange Commission (the "SEC") has approved the Company's previously disclosed settlement, resolving the SEC's investigation. The investigation concerned legacy practices related to the Company's key performance indicators, revenue recognition practices, and related issues. The settlement resolves the last of the major legacy matters that commenced in 2022.
Under the settlement, the Company agreed to pay a $1.0 million civil monetary penalty in quarterly installments and consented to the entry of an administrative order, without admitting or denying the SEC's findings in the order. DOOR first disclosed the settlement in principle on August 10, 2026.
The settlement caps a four-year effort to resolve legacy issues that began in 2022. Since late 2024, DOOR has:
- Filed seven years of financial statements, including restated prior periods, and became current with its SEC reporting obligations in February 2026 for the first time since mid-2022
- Resolved four shareholder lawsuits, the last of which was settled in principle in August 2026
- Reached final resolution with the SEC
"When our team took over, we inherited a restatement, four major securities lawsuits and an SEC investigation," said David Lillis, Chief Executive Officer of DOOR. "Resolving them took years of work and significant resources. With this final matter behind us, those resources go back to where they belong: helping owners and operators run smarter buildings. We're grateful to our customers, partners and team for sticking with us."
About DOOR
DOOR is a Building Intelligence company redefining how buildings operate. By combining hardware, intuitive software, and automated services into one streamlined system, DOOR helps properties think ahead, reduce overhead, and quietly improve life inside. Headquartered in St. Louis, Missouri, DOOR supports owners, operators, and residents across residential portfolios and purpose-built communities.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include statements regarding the Company's plans, objectives, expectations and intentions, including statements regarding the Company's intended allocation of resources following the settlement and the anticipated effects of resolving the SEC investigation on the Company's operations and strategic focus. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements.
Factors that could cause actual results to differ materially include those described in the Company's filings with the SEC, including under the heading "Risk Factors" in the Company's most recent Annual Report on Form 10-K and subsequent filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to update or revise any forward-looking statements, except as required by law.
SOURCE Latch, Inc.
