LuxUrban Hotels $3M Securities Class Action Settlement

William C. Gendron

Editor in Chief

Published

May 13, 2026 10:43 AM

Updated

May 13, 2026

Who can file a claim?

The settlement includes all persons and entities who purchased or otherwise acquired LuxUrban publicly traded common stock (Nasdaq: LUXH) or 13% Series A Cumulative Redeemable Preferred Stock (Nasdaq: LUXHP) between May 9, 2023, and Aug. 20, 2024, inclusive, and suffered damages as a result.

Additional details

Both individuals and entities can be class members.
Each separate legal entity or separately managed account must submit a separate claim.
Authorized representatives may submit claims on behalf of beneficial owners subject to the requirements of the claim form.
Executors, administrators, guardians, conservators, custodians, trustees and legal representatives may submit claims on behalf of others and must provide proof of authority.
Joint owners must each sign the claim form.

How much is the LuxUrban payout?

The total settlement fund is $3,000,000. The amount each class member will receive depends on several factors:

The number of valid claims submitted
The number of shares purchased or acquired during the class period
The timing of each investor purchase, sale and holding
The total recognized losses of all claimants

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:

The estimated average distribution per share of common or preferred stock is approximately $0.05 before deductions. After estimated deductions for attorneys' fees and expenses, settlement administration costs and service awards to class representatives, the estimated average net recovery is approximately $0.03 per share.
The settlement administrator will calculate recognized losses using the court-approved plan of allocation, which applies different formulas depending on when class members purchased, sold or held their securities.

For shares purchased during the class period and sold before Jan. 17, 2024, the recognized loss is $0.
For shares purchased during the class period and sold between Jan. 17, 2024, and the close of trading on Aug. 20, 2024, the recognized loss is the lesser of the per-share price inflation on the purchase date minus the per-share price inflation on the sale date, or the purchase price minus the sale price.
For shares purchased during the class period and sold between Aug. 21, 2024, and Nov. 18, 2024, inclusive, the recognized loss is the least of the per-share price inflation on the purchase date, the purchase price minus the sale price, or the purchase price minus the 90-day lookback value on the date of sale (pages 15-16 of the settlement notice).
For shares purchased during the class period and still held as of the close of trading on Nov. 18, 2024, the recognized loss is the lesser of the per-share price inflation on the purchase date, or the purchase price minus the 90-day lookback average closing price of $0.06 for common stock or $15.29 for preferred stock.
For shares purchased between May 14, 2024, and Aug. 20, 2024, the settlement administrator reduces the recognized loss calculated under the formulas above by 90%.

The settlement administrator will set any recognized loss that calculates to a negative number to $0.
If total recognized losses exceed the fund, the settlement administrator will reduce payments on a pro rata basis.
Class members whose payment would be less than $10 will not receive a payout.

How to claim a LuxUrban securities class action settlement payment

Class members may file a claim online or download, print and complete the PDF claim form (pages 22-24 of the settlement notice) and mail it to the settlement administrator. The claim deadline is Aug. 10, 2026.

Settlement administrator's mailing address: LuxUrban Hotels Inc. Securities Settlement, c/o Strategic Claims Services, 600 N. Jackson St., Ste. 205, P.O. Box 230, Media, PA 19063

Proof or documentation required to submit a claim

All class members must provide their full Social Security or taxpayer identification number. They must also provide holdings and transaction information, including:

Number of shares of LuxUrban common stock and preferred stock held as of May 8, 2023
Trade dates for purchases and sales of LuxUrban common stock and preferred stock between May 9, 2023, and Nov. 18, 2024
Number of shares purchased, acquired or sold
Total purchase, sale or acquisition price
Number of shares of LuxUrban common stock and preferred stock held as of Nov. 18, 2024 (if applicable)

Class members must also provide documentation to support their transactions in LuxUrban securities. Acceptable proof includes:

Broker confirmation slips
Broker account statements
Authorized statements from a broker, financial advisor or financial institution containing the transactional information found in a confirmation slip

$3 million settlement fund

The $3,000,000 settlement fund includes:

Settlement administration costs: To be determined
Attorneys' fees: Up to $990,000
Attorneys' expenses: Up to $275,000
Service awards to class representatives: Up to $10,000 total
Payments to eligible class members: Remainder of the fund

Important dates

Deadline to file a claim: Aug. 10, 2026
Opt-out deadline: Aug. 18, 2026
Settlement hearing: Sept. 8, 2026

When is the LuxUrban securities class action settlement payout date?

The settlement administrator will issue payments to eligible class members after the court resolves any appeals and grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged LuxUrban Hotels Inc. and certain executives made false and misleading statements about the company's execution of lease agreements for its portfolio of hotel properties. The plaintiffs claimed these statements inflated the price of LuxUrban securities and caused investor losses when corrective information entered the market.

The individual defendants denied all allegations of wrongdoing but agreed to settle to avoid the costs, risks and delays of continued litigation.