Facing lawsuits and legal enforcement actions in several states, the company said Thursday it will close for about two weeks after being sued by the Connecticut Attorney General.
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Rental platform EasyKnock, which has faced consumer lawsuits and enforcement actions from attorneys general in several states, has closed its doors, the company announced Thursday.
“After many years of serving consumers, EasyKnock has closed its doors,” an announcement posted on the company’s website informs visitors. “We are very grateful for the trust placed in us to be part of the financial journey of so many. Although EasyKnock may no longer exist, arrangements have been made to ensure that our customers receive continued support.”
The news was first reported by NPR, which published a lengthy investigative piece on the business practices of the New York-based sale-leaseback platform in June.
NPR documented consumer lawsuits against EasyKnock in Texas, Maryland, South Carolina, Pennsylvania and Ohio, as well as enforcement actions by attorneys general in Michigan and Massachusetts.
In September, EasyKnock scored a victory in Texas when an arbitrator ruled against a Texas couple who said their transaction was actually a disguised loan, awarding the company $153,000.
But last month, the Connecticut Attorney General’s Office filed a lawsuit against EasyKnock, accusing the company of “targeting foreclosed homeowners who, for reasons of bad credit or bad debt, may not be eligible for financing.”
The Nov. 27 complaint, which detailed three instances in which the proceeds amounted to “just half of the buyer’s total,” and accused EasyKnock of engaging in illegal practices as a landlord, sought to stop the company from doing business in Connecticut. , and restitution and civil penalties.
Inman reached out to EasyKnock for comment.
Launched in 2016 and based in New York City, EasyKnock closed a $3.5 million seed funding round in 2018 that included $100 million in new debt financing from investors including Montage Ventures, Crestar Partners and Blumberg Capital.
That was followed by a $12 million Series A in 2019 that also provided $203 million in debt financing, and a $20 million Series B in summer 2020. Recently, EasyKnock announced a $57.2 million Series C funding round from new and existing investors, including Blumberg Capital, Gaingels, Moderne Ventures, QED Investors, Viola FinTech and Zillow founder Spencer Rascoff.
Editor’s note: Inman’s Taylor Anderson contributed to this story.
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