LuxUrban Must Defend Against Investors’ Lease Accusations (1)

LuxUrban Hotels Inc. must fight against allegations that former executives of the short-term rental company overhyped its growth and hotel deals to shareholders.

Investors plausibly pleaded that the executives knew or recklessly disregarded that their announcements of adding four hotels to LuxUrban’s portfolio were misleading, Judge Paul A. Engelmayer said while largely letting the proposed class action proceed.

The US District Court for the Southern District of New York judge said that the former chief executives, being directly involved in those transactions and touted as well-versed in these type of deals, would’ve known about their real-time status while claiming that ...