NEW YORK, March 19, 2024 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against LuxUrban Hotels Inc. ("LuxUrban" or the "Company") (NASDAQ: LUXH). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether LuxUrban and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until April 12, 2024, to ask the Court to appoint you as Lead Plaintiff for the class if you are a shareholder who purchased or otherwise acquired LuxUrban securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
In November 2023, LuxUrban announced that it had signed a 25-year Master Lease Agreement with the Royalton Hotel, a four star hotel located at 44 West 44th Street, New York, New York.
Then, On January 17, 2024, Bleecker Street Research published a report alleging that the Company had not signed a lease with the Royalton Hotel. The report started that the owner of the Royalton hotel building confirmed LuxUrban had never actually signed a lease, nor even provided a Letter of Credit. The report further 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."
On this news, LuxUrban's stock price fell $1.01 per share, or 20.61%, over the following two trading sessions, to close at $3.89 per share on January 18, 2024.
Then, on February 2, 2024, 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 "Management's Discussion and Analysis of Financial Condition and Results of Operations—Property Summary—Properties under lease, not operating."
On this news, LuxUrban's stock price fell $0.99 per share, or 22.05%, to close at $3.50 per share on February 5, 2024.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Danielle Peyton
Pomerantz LLP
dpeyton@pomlaw.com
646-581-9980 ext. 7980
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SOURCE Pomerantz LLP
