Notice of Settlement of Shareholder Derivative Actions

ST. LOUIS, July 30, 2026 /PRNewswire/ -- Latch, Inc., (DOOR) today released the following pursuant to an Order of the U.S. District Court for the Southern District of New York.

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

SUMMARY NOTICE OF PENDENCY AND PROPOSED SETTLEMENT OF
STOCKHOLDER DERIVATIVE ACTION

TO: ALL RECORD HOLDERS AND BENEFICIAL OWNERS OF LATCH, INC. ("LATCH" OR THE "COMPANY") COMMON STOCK AS OF JULY 16, 2026, WHO CONTINUE TO OWN SUCH SHARES ("CURRENT LATCH STOCKHOLDERS").

PLEASE READ THIS SUMMARY NOTICE CAREFULLY AND IN ITS ENTIRETY AS YOUR RIGHTS MAY BE AFFECTED BY PROCEEDINGS IN THE LITIGATION.

YOU ARE HEREBY NOTIFIED that the above-captioned consolidated stockholder derivative action (the "Action"), is being settled on the terms set forth in a Stipulation and Agreement of Settlement dated July 16, 2026 (the "Stipulation").

The Action alleges claims against each of the Individual Defendants^[1] for breach of fiduciary duty, and/or other violations of law, in connection with their making and/or causing the Company to make false and misleading statements and omissions to the public regarding various of the Company's financial metrics, including Revenue, Total Bookings, and Total Annual Recurring Revenue. In particular, the Action alleges that improper accounting procedures were used to calculate the Company's quarterly and annual reports filed with the U.S. Securities and Exchange Commission ("SEC"), requiring the restatement of certain previously-issued financial statements. The Action alleges that, as a result of the foregoing, the Company experienced reputational and financial harm. Defendants have denied and continue to deny each and all of the claims and allegations of fault, liability, wrongdoing, or damages asserted in the Action.

Pursuant to the terms of the Settlement, Latch agrees to implement and maintain certain corporate governance reforms that are outlined in Exhibit A to the Stipulation (the "Reforms"). The Reforms shall be maintained for three and a half (3.5) years from the Effective Date. Latch acknowledges and agrees that the filing, pendency, and settlement of the Action was a material factor in the Company's decision to adopt, implement, and maintain the Reforms, and that the Reforms confer a substantial benefit upon the Company and its stockholders.

After negotiating the material terms of the Settlement, counsel for the Parties negotiated the attorneys' fees and expenses to be paid to Plaintiffs' Counsel, subject to Court approval. In light of the substantial benefits conferred upon the Company and its stockholders, the Company shall pay or cause its insurers to pay to Plaintiffs' Counsel four hundred fifty thousand dollars ($450,000.00) for their attorneys' fees and expenses (the "Fee and Expense Amount"), subject to Court approval. Defendants also agreed not to object to the request for the Court to approve Service Awards of up to two thousand dollars ($2,000.00) for each of the Plaintiffs, to be paid from the Fee and Expense Amount.

On October 6, 2026 at 3:30 p.m., a hearing (the "Settlement Hearing") will be held before the Honorable John G. Koeltl, at the United States District Court for the Southern District of New York, Daniel Patrick Moynihan United States Courthouse, 500 Pearl St., Courtroom 14A, New York, New York 10007, for the purpose of determining whether the Settlement should be approved as fair, reasonable, and adequate and whether the Court should approve the agreed-to Fee and Expense Amount and the Service Awards for Plaintiffs. Because this is not a class action, except as otherwise provided for in the Stipulation with respect to the Plaintiffs, no Current Latch Stockholder has the right to receive any individual compensation as a result of the Settlement.

This Summary Notice provides a condensed overview of certain provisions of the Stipulation and the full Notice of Pendency and Proposed Settlement of Stockholder Derivative Action (the "Notice"). It is not a complete statement of the events of the Action or the terms set forth in the Stipulation. This Summary Notice should be read in conjunction with, and is qualified in its entirety by reference to, the text of the Stipulation filed with the U.S. District Court for the Southern District of New York. For additional information about the claims asserted in the Action, and the terms of the proposed Settlement, you may inspect the Stipulation and its exhibits and other papers at the Clerk's office in the Court at any time during regular business hours. In addition, copies of the Stipulation and its exhibits and the Notice are available on the Investor Relations page of the Company's website, door.com/investors.

The Court may, in its discretion, change the date and/or time of the Settlement Hearing without further notice to you. If you intend to attend the Settlement Hearing, please consult the Court's calendar for any change in the format, date or time of the Settlement Hearing.

Inquiries about the Action or the Settlement may be made to: Timothy Brown, The Brown Law Firm, P.C., 1350 Avenue of the Americas, Suite 1200, New York, NY 10019, Telephone: (516) 922-5427, Email: [email protected] or Michael J. Hynes, Hynes & Hernandez, LLC, 101 Lindenwood Drive, Suite 225, Malvern, PA 19355, Telephone: (484) 875-3116, E-mail: [email protected]. 

Any Current Latch Stockholder has a right, but is not required, to appear and to be heard at the Settlement Hearing. You may enter an appearance before the Court, at your own expense, individually or through counsel of your choice. If you want to object at the Settlement Hearing, you must be a Current Latch Stockholder and you must first comply with the procedures for objecting that are set forth in the Notice. Any objection to any aspect of the Settlement must be filed with the Clerk of the Court and sent to Plaintiffs' Counsel and Defendants' Counsel no later than September 15, 2026 (21 days before the Settlement Hearing), in accordance with the procedures set forth in the Stipulation and the Notice. Any Current Latch Stockholder who fails to object in accordance with such procedures will be bound by the Order and Final Judgment of the Court granting final approval to the Settlement and the releases of claims therein, and shall be deemed to have waived the right to object (including the right to appeal) and forever shall be barred, in this proceeding or in any other proceeding, from raising such objection.

PLEASE DO NOT CALL THE COURT OR DEFENDANTS WITH QUESTIONS ABOUT THE SETTLEMENT.

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SOURCE Latch, Inc.