Grabar Law Office is investigating claims on behalf of shareholders of LuxUrban Hotels Inc. (OTC: LUXH). The investigation concerns whether certain officers and directors breached the fiduciary duties they owed to the company.

LuxUrban Hotels Inc. (OTC: LUXH) utilizes an asset light business model to lease hotels on a long-term basis and rent hotel rooms in the properties it leases. The Company leases to business and vacation travelers through the Company’s online portal and third-party sales and distribution channels, including several worldwide online travel agency channels. The Company manages a portfolio of hotel rooms in New York, Washington D.C., Miami Beach, New Orleans, and Los Angeles.

In November 2023, the Company announced it had signed a 25-year Master Lease Agreement with the Royalton Hotel in New York.

A recently filed class action complaint has now survive a motion to dismiss.  The underlying complaint alleges that, LuxUrban (OTC: LUXH), through certain of its officers, made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects including: (1) that the Company had not signed a lease with the Royalton Hotel; (2) that, as a result, LuxUrban’s total reported units was overstated; (3) that LuxUrban faced multiple lawsuits for unpaid rent; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis

On July 25, 2025, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss. In so doing, the Judge Engelmayer kept the majority of the complaint’s allegations intact. Judge Engelmayer found the investors had adequately pled that the financial statement for the first quarter of 2024 and representations made about the growth of LuxUrban's portfolio, that focused on the addition of four new hotels, were all false.

The amended complaint also provides "strong circumstantial support" that Ferdinand and Kothari knew their statements about the addition of four hotels were false when made, the judge said, since they were directly involved in negotiating master lease agreements with the hotels, and "thus presumably knew in real-time the true state of those transactions."

"As to Ferdinand, the AC [Amended Complaint] alleges that he was required to issue personal guarantees concerning [master lease agreements] ... as to Kothari, the press releases announcing the purported addition of each of the four hotels listed him as a contact," the order states.

The judge also found that the suit adequately pleads loss causation and control person liability.

WHAT YOU CAN DO NOW: If you purchased LuxUrban (OTC: LUXH) shares prior to November 8, 2023, and still hold shares today, you are encouraged to contact Joshua Grabar at jgrabar@grabarlaw.com, or call 267-507-6085.  You can seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to you whatsoever.