LuxUrban Hotels Inc.
Investors that purchased the Company’s securities and have suffered a loss, please fill in transaction information below, or email to info@portnoylaw.com.
There is no cost or obligation associated with submitting your information. If you are a shareholder who suffered a loss, please submit your contact information and purchase information to participate in the putative class action.
We also encourage you to contact Lesley F. Portnoy of The Portnoy Law Firm, at 310.692.8883, to discuss your rights free of charge. You can also reach us through the firm’s website at www.portnoylaw.com, or by email at info@portnoylaw.com.
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CONTACT:
Portnoy Law Firm
Lesley F. Portnoy, Esq.,
www.portnoylaw.com
Office: 310.692.8883
1800 Century Park East, Suite 600
Los Angeles, CA 90067
info@portnoylaw.com
The complaint centers around allegations that during the Class Period, the Defendants issued materially false and/or misleading statements and also failed to disclose critical adverse details regarding the Company’s business operations and future outlook. Specifically, the Defendants did not inform investors that:
- The Company had not actually secured a lease agreement with the Royalton Hotel, contrary to their announcement in November 2023.
- Consequently, LuxUrban’s reported total number of units was inaccurately inflated.
- LuxUrban was involved in multiple legal disputes due to failing to pay rent, with lawsuits filed by landlords of at least four properties within the last six months, none of which were disclosed to investors.
- These omissions and false statements made by the Defendants led to a misleadingly positive portrayal of LuxUrban’s business activities, operational status, and potential for future success.
The situation unraveled when Bleecker Street Research published a report on January 17, 2024, revealing that LuxUrban had not signed a lease with the Royalton Hotel and highlighting the Company’s undisclosed legal challenges regarding unpaid rent. This revelation led to a significant drop in the Company’s stock price, first by 12% on the day the report was published, followed by a further 10% decline the subsequent day.
Further exacerbating the issue, LuxUrban announced on February 2, 2024, the cessation of discussions regarding the Royalton Hotel lease and retracted previous statements about the hotel, including those made in quarterly reports. This announcement resulted in another sharp decline in the stock price by 22% on February 5, 2024.
These events and the subsequent legal complaint underscore the allegations that LuxUrban and its Defendants failed in their duty to provide truthful and complete information to investors, significantly impacting the Company’s stock value and investor trust.
