Going through lawsuits and enforcement actions by attorneys common in a number of states, the corporate stated Thursday it could shut down about two weeks after being sued by Connecticut’s Lawyer Normal.
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Sale-leaseback platform EasyKnock, which confronted client lawsuits and enforcement actions by attorneys common in a number of states, has closed its doorways, the corporate introduced Thursday.
“After a few years of serving shoppers, EasyKnock has closed its doorways,” an announcement posted on the corporate’s web site informs guests. “We’re deeply grateful for the belief positioned in us to be a part of the monetary journey of so many. Whereas EasyKnock could now not be round, preparations have been made to make sure continued providers for our clients.”
The information was first reported by NPR, which revealed a prolonged investigative piece on the New York-based sale-leaseback platform’s enterprise practices in June.
NPR documented client lawsuits in opposition to EasyKnock in Texas, Maryland, South Carolina, Pennsylvania and Ohio, and enforcement actions by attorneys common in Michigan and Massachusetts.
In September, EasyKnock scored a victory in Texas when an arbitrator dominated in opposition to a Texas couple who claimed that their transaction was truly a mortgage in disguise, awarding the corporate $153,000.
However final month, the Connecticut Lawyer Normal’s Workplace filed swimsuit in opposition to EasyKnock, alleging the corporate “targets cash-strapped householders in want of financing who, for causes of poor credit score or extreme debt, could not qualify for financing.”
The Nov. 27 grievance, which detailed three situations by which money proceeds allegedly equaled “only a fraction of the buyer’s complete residence fairness,” and accused EasyKnock of partaking in unlawful practices as a landlord, sought to cease the corporate from doing enterprise in Connecticut, in addition to restitution and civil penalties.
Inman has requested remark from EasyKnock.
Launched in 2016 and primarily based in New York Metropolis, EasyKnock closed a $3.5 million seed funding spherical in 2018 that included $100 million in new debt funding from traders together with Montage Ventures, Crestar Companions and Blumberg Capital.
That was adopted by a $12 million Collection A in 2019 that additionally supplied $203 million in debt funding, and a $20 million Collection B in the summertime of 2020. Most lately, EasyKnock introduced a $57.2 million Collection C funding spherical from new and current traders, together with Blumberg Capital, Gaingels, Moderne Ventures, QED Buyers, Viola FinTech and Zillow co-founder Spencer Rascoff.
Editor’s word: Inman’s Taylor Anderson contributed to this story.
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