St. Louis – October 01, 2026 -- DOOR (OTC: LTCH) has finalized a settlement with the U.S. Securities and Exchange Commission, closing a four-year investigation into legacy revenue recognition and key performance indicator practices with a $1.0 million civil penalty payable in quarterly installments.
SEC closes investigation that began in 2022
The SEC approved the previously disclosed settlement, which the Company first announced in principle on August 10, 2026. DOOR consented to an administrative order without admitting or denying the regulator's findings.
Company filed seven years of restated financial statements
Since late 2024, DOOR has filed seven years of financial statements, including restated prior periods, becoming current with its SEC reporting obligations in February 2026 for the first time since mid-2022.
Four shareholder lawsuits resolved, last settled in August 2026
DOOR resolved all four shareholder lawsuits tied to the legacy accounting issues, with the final case settled in principle in August 2026. The SEC resolution marks the last of the major legacy matters stemming from the 2022 restatement.
CEO David Lillis says resources now shift to core operations
"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. He said resolving the matters required years of work and significant resources, which will now be redirected toward helping owners and operators run smarter buildings.