In a swift turn of events, EasyKnock, a sale-leaseback platform, has decided to close its doors after facing legal action from several states’ attorneys general. This decision came about two weeks following a lawsuit from Connecticut’s Attorney General.
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Here are some key points to consider surrounding EasyKnock’s closure:
- The company announced the closure on its website, expressing gratitude for the trust bestowed upon them by consumers over the years.
- Despite EasyKnock’s shutdown, provisions have been made to ensure continuous services for existing customers.
- EasyKnock faced consumer lawsuits in multiple states, including Texas, Maryland, South Carolina, Pennsylvania, and Ohio, alongside legal actions by attorneys general in Michigan and Massachusetts.
- Following an arbitrator’s ruling in Texas favoring EasyKnock, the company was awarded $153,000 in a case involving a dispute with a Texas couple.
- The Connecticut Attorney General’s Office filed a lawsuit in November against EasyKnock, with allegations that the company targets financially distressed homeowners who may not qualify for traditional financing.
- Founded in 2016 and headquartered in New York City, EasyKnock secured substantial funding rounds over the years, including a $3.5 million seed funding, $12 million Series A, $20 million Series B, and a $57.2 million Series C.
- The closure of EasyKnock marks the end of a chapter for the sale-leaseback platform that had disclosed itself as a financial option for homeowners.
The decision to shut down a company is never an easy one, but it underscores the importance of navigating regulatory environments and maintaining transparency with consumers. As we bid farewell to EasyKnock, let this serve as a reminder of the significance of ethical business practices in an ever-evolving market landscape.
