LuxUrban Settles Investors’ Hotel Lease Lawsuit for $3 Million

Former LuxUrban Hotels Inc. executives agreed to pay $3 million to resolve investor allegations the short-term rental company overhyped its growth and hotel deals.

The settlement will be funded by LuxUrban’s directors and officers liability insurance policies, given the company and one of the executives have filed for bankruptcy, investors leading the case said while seeking preliminary approval of the deal Thursday. If approved by the US District Court for the Southern District of New York, the investor agreement would end allegations that embattled LuxUrban and former executives Brian Ferdinand, who filed for bankruptcy, and Shanoop Kothari painted a rosy ...