Kahn Swick & Foti, LLC (KSF), a securities litigation law firm, announced an investigation into LuxUrban Hotels Inc. (OTC: LUXH). The investigation was initiated by former Louisiana Attorney General Charles C. Foti, Jr., a partner at KSF.
The investigation centers on discrepancies surrounding a purported 25-year lease agreement with the Royalton Hotel in New York. LuxUrban initially announced the agreement but later retracted the statement, citing that no lease had been signed and that a letter of credit had not been provided.
Independent research firm Bleeker Street Research reported that LuxUrban had faced multiple lawsuits alleging unpaid rent at several properties. These lawsuits, KSF notes, were not disclosed to investors.
Following these revelations, a securities class action lawsuit was filed against LuxUrban and some of its executives. The lawsuit alleges the company failed to disclose material information, a violation of federal securities laws. A court recently rejected a motion by LuxUrban to dismiss parts of the lawsuit, allowing the case to proceed.
KSF‘s investigation will determine whether LuxUrban‘s officers and directors violated their fiduciary duties to shareholders or broke state or federal laws. The firm is contacting investors who may have relevant information or wish to discuss their legal options.
KSF, with offices across the United States and a representative office in Luxembourg, is a prominent securities litigation firm specializing in recovering investment losses for various clients, including institutional and retail investors. The firm’s partners include several former state attorneys general. They have a strong track record of success in high-profile cases, consistently ranking among the top firms nationally for total settlement value.
Investors who held LuxUrban shares and would like to learn more about their legal rights are encouraged to contact KSF. The firm offers a free consultation to discuss potential legal action. KSF emphasizes that participation in the investigation carries no obligation or cost to investors.
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