LuxUrban Hotels Inc. (OTC: LUXH)

Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into LuxUrban Hotels Inc. (OTC: LUXH).

In November 2023, the Company announced the signing of a 25-year Master Lease Agreement (“MLA”) with Royalton Hotel in New York. However, on January 17, 2024, Bleeker Street Research reported that the Company had not actually signed a lease with the Royalton Hotel nor even provided a Letter of Credit, and that 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, the Company disclosed 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.”

Thereafter, the Company and certain of its executives were sued in a securities class action lawsuit, charging them with failing to disclose material information in violation of federal securities laws. which remains ongoing. Recently, the court presiding over that case denied the Company’s motion to dismiss in part, allowing the case to move forward.

KSF’s investigation is focusing on whether LuxUrban’s officers and/or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws.

If you have information that would assist KSF in its investigation, or have been a long-term holder of LuxUrban shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-833-938-0905 or email KSF Managing Partner Lewis Kahn (lewis.kahn@ksfcounsel.com), or fill out the form on this page.