Grabar Law Office Investigates Claims on Behalf of Shareholders of LuxUrban Hotels Inc. (LUXH) as Shareholder Class Action Survives Motion to Dismiss

Philadelphia, Pennsylvania--(Newsfile Corp. - August 19, 2025) - 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.

If you purchased LuxUrban (OTC: LUXH) shares prior to November 8, 2023, and still hold shares today, 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. You are encouraged to visit https://grabarlaw.com/the-latest/luxurban-shareholder-investigation/, contact Joshua Grabar at jgrabar@grabarlaw.com, or call us at 267-507-6085.

WHY? A recently filed securities fraud class action complaint has now survived 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 in the securities fraud class action issued an Order in which 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.

Per the Court, 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 visit https://grabarlaw.com/the-latest/luxurban-shareholder-investigation/, contact Joshua Grabar at jgrabar@grabarlaw.com, or call us at 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.

$LUXH #LuxUrban

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