Lawsuit filed for Investors who lost money with shares of LuxUrban Hotels Inc. (NASDAQ: LUXH)

An investor, who purchased shares of LuxUrban Hotels Inc. (NASDAQ: LUXH), filed a over alleged violations of Federal Securities Laws by LuxUrban Hotels Inc.

Investors who purchased shares of LuxUrban Hotels Inc. (NASDAQ: LUXH) have certain options and for certain investors are short and strict deadlines running. Deadline: April 12, 2024. NASDAQ: LUXH investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Miami, FL based LuxUrban Hotels Inc. utilizes an asset light business model to lease entire hotels on a long-term basis and rent out hotel rooms in the properties it leases.

In November 2023, LuxUrban Hotels Inc announced it had signed a 25-year Master Lease Agreement ("MLA") with the prestigious Royalton Hotel in New York.
On January 17, 2024, Bleeker Street Research published a report, which alleged that LuxUrban Hotels Inc had not actually signed a lease with the Royalton Hotel. The report started the owner of the Royalton hotel building confirmed LuxUrban Hotels Inc never actually signed a lease, nor even provided a Letter of Credit. The report also alleged the Company was embroiled in a number of lawsuits that "allege LuxUrban failed to pay rent repeatedly," and "in the last six months has been sued by landlords at four of their properties for unpaid rent" but that LuxUrban had "never once disclosed the nature of these lawsuits."

Then on February 2, 2024, after the market closed, LuxUrban Hotels Inc announced the "termination of discussions to add the Royalton Hotel to its roster of properties" and that it was "withdrawing its prior statements regarding the Royalton" including prior quarterly reports which listed the Royalton under "Management's Discussion and Analysis of Financial Condition and Results of Operations-Property Summary-Properties under lease, not operating."

Shares of LuxUrban Hotels Inc. (NASDAQ: LUXH) declined from $6.88 per share on January 08, 2024, to $2.53 per shae on February 08, 2024.

The plaintiff claims that between November 8, 2023 and February 2, 2024, the Defendants failed to disclose to investors that the Company had not signed a lease with the Royalton Hotel, that, as a result, LuxUrban's total reported units was overstated, that LuxUrban faced multiple lawsuits for unpaid rent, and that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Those who purchased shares of LuxUrban Hotels Inc. (NASDAQ: LUXH) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.