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LUXH.US
id: 1100
LuxUrban Hotels (LUXH) Royalton Hotel Deal Case
S.D. New York
Court1:24-cv-01030
Case number11/08/2023
Class period Start02/02/2024
Class period End04/12/2024
Lead Plaintiff motion deadline- $LUXH stockholder filed a claim vs. LuxUrban over misleading them about their Royalton Hotel deal.
- The news about Royalton caused $LUXH to fall 22%, losing $36M+ in shareholder value.
In November 2023, LuxUrban signed a 25-year lease with the Royalton Hotel.
On January 17, 2024, Bleeker Street Research published a report, which alleged that LuxUrban hadn't signed a lease with the Royalton Hotel, as claimed.
- It also stated LuxUrban faced lawsuits for unpaid rent at multiple properties, undisclosed by the company.
$LUXH dropped by 12% on January 17, 2024, due to the news.
Then, LuxUrban announced on February 2, 2024, that they were ending talks to acquire the Royalton Hotel and withdrawing previous statements about it in quarterly reports.
$LUXH fell 22% on February 5, 2024, after this announcement.
Based on these events, $LUXH stockholder filed a claim against LuxUrban and its leaders, accusing them of the following:
- They failed to disclose that LuxUrban hadn't signed a lease with the Royalton Hotel, leading to an overstatement of reported units.
- LuxUrban faced multiple lawsuits for unpaid rent, and positive statements about the prospects were allegedly misleading.
Considering all the representations, investors have reasons to suspect that LuxUrban misled them about the Royalton Hotel deal and its prospects.
Case Status
Lead Plaintiff Appointed
Alleged Offence
Mismanagement,
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
02/05/2024
Filing date
02/12/2024
Lead Plaintiff Deadline
04/12/2024