Investigation Launched into LuxUrban Hotels Inc. by Former Louisiana Attorney General

LuxUrban Hotels Investigation by Kahn Swick & Foti, LLC

In a development that has captured the attention of investors and analysts alike, Kahn Swick & Foti, LLC (KSF), a law firm headed by former Louisiana Attorney General Charles C. Foti, Jr., has initiated an investigation into LuxUrban Hotels Inc. (OTC: LUXH). This inquiry raises alarms concerning the company's practices and transparency in the hospitality industry, which may impact shareholders significantly.

Background of the Investigation

The investigation commenced after concerning revelations about LuxUrban's business dealings. In November 2023, the company publicly announced a 25-year Master Lease Agreement (MLA) with the renowned Royalton Hotel in New York. However, just a couple of months later, these claims were called into question when Bleeker Street Research revealed that LuxUrban had not entered into a lease with the Royalton Hotel and lacked even a basic Letter of Credit to affirm such a partnership. Furthermore, the report noted several ongoing lawsuits against LuxUrban, accusing the firm of multiple instances of unpaid rent across four properties over the previous six months.

The situation escalated when LuxUrban publicly announced the termination of negotiations with the Royalton Hotel in February 2024, retracting previous claims regarding its dealings. The company also retracted quarterly reports that listed the Royalton under its property management section. Such discrepancies have raised significant legal and ethical questions about LuxUrban's management practices.

Securities Class Action Lawsuit Implications

In addition to the investigation launched by KSF, LuxUrban and specific executives are facing a securities class action lawsuit. This legal challenge centers on allegations of failing to disclose vital information in accordance with federal securities laws. A recent ruling by the presiding court has allowed the case to move forward, denying the company's motion to dismiss the allegations. As this lawsuit unfolds, it amplifies concerns about the potential liabilities faced by both the firm and its executives.

Focus of KSF's Investigation

Kahn Swick & Foti's ongoing investigation primarily examines whether the actions of LuxUrban’s officers and directors constituted a breach of their fiduciary duties to shareholders. The firm is scrutinizing various activities related to the company’s operations to determine if state or federal laws have been violated. This level of regulatory oversight serves as a critical safety net for investors who may have suffered financial losses due to alleged misconduct at LuxUrban.

KSF is particularly interested in hearing from shareholders who might have information regarding LuxUrban's operations or any relevant experiences relating to their investments. The firm encourages long-term LuxUrban shareholders to discuss their legal rights or provide tips that may assist in the investigation.

Conclusion and Next Steps

As the investigation into LuxUrban Hotels Inc. progresses, it underscores the significance of corporate transparency and compliance with legal standards. Investors are urged to be proactive and informed regarding their investments, particularly in light of ongoing legal battles. KSF, with its extensive experience in securities litigation, stands ready to support those affected by possible mismanagement at LuxUrban Hotels. For those interested in learning more about the situation or participating in the inquiry, KSF has made resources available, including a direct line for inquiries and a dedicated website section for updates on the case.

For any inquiries or to share information regarding this matter, individuals can contact KSF at 1-833-938-0905 or visit their official website to learn more about their ongoing efforts regarding LuxUrban.