Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, April 08, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises LuxUrban Hotels Inc. ("LuxUrban" or "the Company") (NASDAQ: LUXH) investors that a lawsuit was filed on behalf of investors that purchased LuxUrban securities between November 8, 2023 and February 2, 2024, inclusive (the “Class Period”).
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
The complaint centers around allegations that during the Class Period, the Defendants issued materially false and/or misleading statements and also failed to disclose critical adverse details regarding the Company's business operations and future outlook. Specifically, the Defendants did not inform investors that:
- The Company had not actually secured a lease agreement with the Royalton Hotel, contrary to their announcement in November 2023.
- Consequently, LuxUrban's reported total number of units was inaccurately inflated.
- LuxUrban was involved in multiple legal disputes due to failing to pay rent, with lawsuits filed by landlords of at least four properties within the last six months, none of which were disclosed to investors.
- These omissions and false statements made by the Defendants led to a misleadingly positive portrayal of LuxUrban's business activities, operational status, and potential for future success.
The situation unraveled when Bleecker Street Research published a report on January 17, 2024, revealing that LuxUrban had not signed a lease with the Royalton Hotel and highlighting the Company's undisclosed legal challenges regarding unpaid rent. This revelation led to a significant drop in the Company's stock price, first by 12% on the day the report was published, followed by a further 10% decline the subsequent day.
Further exacerbating the issue, LuxUrban announced on February 2, 2024, the cessation of discussions regarding the Royalton Hotel lease and retracted previous statements about the hotel, including those made in quarterly reports. This announcement resulted in another sharp decline in the stock price by 22% on February 5, 2024.
These events and the subsequent legal complaint underscore the allegations that LuxUrban and its Defendants failed in their duty to provide truthful and complete information to investors, significantly impacting the Company's stock value and investor trust.
Please visit our website to review more information and submit your transaction information.
The Portnoy Law Firm represents investors in pursuing claims caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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