Sign In
Step 1
Unite with Fellow Investors
Step 2
Choose the Best Attorney
Step 3
Provide Documents
Step 4
Follow Case Progress
Step 5
Get Payout
LUXH.US
id: 1100

LuxUrban Hotels (LUXH) Royalton Hotel Deal Case

S.D. New York
Court
1:24-cv-01030
Case number
08 Nov 2023
Class period Start
02 Feb 2024
Class period End
12 Apr 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
05 February 2024
Filing date
12 February 2024
Lead Plaintiff Deadline
12 April 2024
Collecting participants…

LuxUrban Hotels Inc.

LuxUrban Hotels Inc. engages in the leasing of entire existing hotels on a long-term basis and rent out hotel rooms in the properties it leases. It manages a portfolio of hotel rooms in New York, M...

    Ticker
    LUXH.US
    CIK
    1893311
    Sector
    Consumer Cyclical
    Industry
    Lodging
    Country
    USA
    Address
    2125 Biscayne Boulevard, Miami, FL, United States, 33137