LuxUrban Hotels, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired LuxUrban Hotels Inc. (“LuxUrban” or the “Company”) (NASDAQ: LUXH) securities during the period from November 8, 2023 through February 2, 2024, inclusive. Investors have until April 12, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
In November 2023, the Company announced it had signed a 25-year Master Lease Agreement (MLA) with the Royalton Hotel in New York. On January 17, 2024, Bleecker Street Research published a report, which alleged that the Company had not actually signed a lease with the Royalton Hotel according to the owner of the Royalton Hotel building. The report also alleged the Company was embroiled in a number of undisclosed lawsuits that allege it failed to pay rent repeatedly, and in the last six months has been sued by landlords at four of their properties for unpaid rent. On this news, the Company's stock price declined $0.58, or approximately 12% to close at $4.32 on January 17, 2024. The stock price continued to fall an additional $0.42, or 10%, to close at $3.89 on January 18, 2024.
Then on February 2, 2024, after the market closed, LuxUrban 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 Managements Discussion and Analysis of Financial Condition and Results of Operations Property. On this news, the Company's stock price declined $0.99, or approximately 22%, to close at $3.50 per share on February 5, 2024.
The complaint filed in this class action alleges that throughout the Class Period, LuxUrban made materially false and/or misleading statements. Specifically, LuxUrban failed to disclose to investors: (1) that the Company had not signed a lease with the Royalton Hotel; (2) that, as a result, LuxUrban's total reported units was overstated; (3) that LuxUrban faced multiple lawsuits for unpaid rent; and (4) 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.
In November 2023, the Company announced it had signed a 25-year Master Lease Agreement (MLA) with the Royalton Hotel in New York. On January 17, 2024, Bleecker Street Research published a report, which alleged that the Company had not actually signed a lease with the Royalton Hotel according to the owner of the Royalton Hotel building. The report also alleged the Company was embroiled in a number of undisclosed lawsuits that allege it failed to pay rent repeatedly, and in the last six months has been sued by landlords at four of their properties for unpaid rent. On this news, the Company's stock price declined $0.58, or approximately 12% to close at $4.32 on January 17, 2024. The stock price continued to fall an additional $0.42, or 10%, to close at $3.89 on January 18, 2024.
Then on February 2, 2024, after the market closed, LuxUrban 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 Managements Discussion and Analysis of Financial Condition and Results of Operations Property. On this news, the Company's stock price declined $0.99, or approximately 22%, to close at $3.50 per share on February 5, 2024.
The complaint filed in this class action alleges that throughout the Class Period, LuxUrban made materially false and/or misleading statements. Specifically, LuxUrban failed to disclose to investors: (1) that the Company had not signed a lease with the Royalton Hotel; (2) that, as a result, LuxUrban's total reported units was overstated; (3) that LuxUrban faced multiple lawsuits for unpaid rent; and (4) 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.