Facing lawsuits and enforcement actions by attorneys general in several states, the company announced on Thursday that it would be shutting down approximately two weeks after being sued by Connecticut’s Attorney General.
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EasyKnock, a sale-leaseback platform that was facing consumer lawsuits and enforcement actions by attorneys general in multiple states, has announced its closure, the company disclosed on Thursday.
“After many years of serving consumers, EasyKnock has closed its doors,” an announcement posted on the company’s website informs visitors. “We are deeply grateful for the trust placed in us to be part of the financial journey of so many. While EasyKnock may no longer be around, arrangements have been made to ensure continued services for our customers.”
The news was first reported by NPR, which published a lengthy investigative piece on the New York-based sale-leaseback platform’s business practices 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 won a case in Texas where an arbitrator ruled against a Texas couple who claimed their transaction was actually a loan in disguise, awarding the company $153,000.
However, last month, the Connecticut Attorney General’s Office filed a lawsuit against EasyKnock, alleging that the company “targets cash-strapped homeowners in need of financing who, for reasons of poor credit or excessive debt, may not qualify for financing.”
The Nov. 27 complaint, detailing instances where cash proceeds allegedly equaled “just a fraction of the consumer’s total home equity,” accused EasyKnock of engaging in illegal practices as a landlord and sought to stop the company from conducting business in Connecticut, as well as requesting restitution and civil penalties.
Inman has reached out to EasyKnock for comment.
Founded in 2016 and headquartered in New York City, EasyKnock closed a $3.5 million seed funding round in 2018, which included $100 million in new debt funding from investors such as Montage Ventures, Crestar Partners, and Blumberg Capital.
This was followed by a $12 million Series A in 2019 that also included $203 million in debt funding, as well as a $20 million Series B in the summer of 2020. Most 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 co-founder Spencer Rascoff.
Editor’s note: Inman’s Taylor Anderson contributed to this story.
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