$3M LuxUrban Hotels Securities Settlement, Do You Qualify for a Payment? Deadline to Claim is August 10

The LuxUrban Hotels $3M Securities Class Action Settlement is a federal investor lawsuit where eligible shareholders can receive a cash payment by filing a claim before August 10, 2026. Former LuxUrban executives Brian Ferdinand and Shanoop Kothari agreed to pay $3,000,000 to resolve allegations they misled investors about the company’s hotel lease portfolio. The settlement is pending final court approval at a hearing scheduled for September 8, 2026.

Quick Facts: LuxUrban Hotels Securities Settlement

Field	Detail
Settlement Amount	$3,000,000
Claim Deadline	August 10, 2026 (11:59 p.m. ET)
Who Qualifies	Purchasers of LUXH or LUXHP stock from May 9, 2023 through August 20, 2024
Estimated Payout Per Share	~$0.03 net per share (after attorneys’ fees and costs)
Proof Required	Yes — broker confirmation or account statement required
Settlement Status	Proposed — Final Approval Hearing September 8, 2026
Administrator	Strategic Claims Services
Official Website	www.strategicclaims.net/LuxUrban
Last Updated	May 14, 2026

Current Status of the LuxUrban Settlement

• The settlement received preliminary court approval and the official notice was issued March 31, 2026.
• The opt-out and objection deadline is August 18, 2026.
• The final approval hearing is scheduled for September 8, 2026, at 10:00 a.m. before Judge Paul A. Engelmayer in the Southern District of New York.
• Payments will be distributed after final approval and after all claims are processed — expect several months post-hearing, assuming no appeals.

What Is the LuxUrban Hotels Lawsuit About? zCap Equity Fund LLC and Ross Marchetta v. LuxUrban Hotels Inc., No. 1:24-cv-01030-PAE

LuxUrban Hotels was a short-term rental company that leased hotel properties and listed them on platforms like Airbnb. Between May 2023 and August 2024, the company and its top executives — CEO Brian Ferdinand and CFO/CEO Shanoop Kothari — made public statements about the company’s growing hotel portfolio that plaintiffs say were materially false and misleading.

Specifically, the lawsuit alleges that LuxUrban claimed to have executed lease agreements for hotel properties it had not actually secured. Those misrepresentations, plaintiffs argue, violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, the core federal anti-fraud provisions that prohibit companies from making false statements to investors. When investigative reporting — including work by Bisnow — revealed that LuxUrban had misrepresented signed leases in its SEC filings, the stock price collapsed.

LuxUrban has since filed for bankruptcy, and Ferdinand also filed for personal bankruptcy. The $3,000,000 securities class action settlement is being funded through LuxUrban’s directors and officers liability insurance. The Individual Defendants deny all allegations of wrongdoing. If you bought LUXH or LUXHP stock during the class period and held shares through any of the corrective disclosure dates beginning January 17, 2024, you may have a recognized loss under this case — and you may be entitled to compensation for investment losses.

For context on how these cases work, see our related article on the Rivian Automotive $250M securities class action settlement, which involved similar allegations of misleading statements around a company’s key financials.

Who Qualifies for the LuxUrban Hotels Securities Settlement?

If you want to know whether to file a LuxUrban settlement claim, here is exactly what the court’s notice requires:

You may qualify if you:

• Purchased or acquired LuxUrban common stock (Nasdaq: LUXH) between May 9, 2023 and August 20, 2024, inclusive
• Purchased or acquired LuxUrban 13% Series A Cumulative Redeemable Preferred Stock (Nasdaq: LUXHP) during the same period
• Held those shares through at least one of the corrective disclosure dates, beginning January 17, 2024 — shares sold before that date have a $0 recognized loss under the plan of allocation
• You suffered a loss based on the price inflation tables in the official settlement notice

You do NOT qualify if you:

• Are a current or former officer or director of LuxUrban or their immediate family members
• Are an affiliate, subsidiary, or entity controlled by the Individual Defendants or LuxUrban
• Are a participant in LuxUrban’s employee retirement or benefit plans
• Purchased shares only after August 20, 2024
• Sold all your shares before January 17, 2024 (the first corrective disclosure date)

If you are unsure whether you qualify, contact Strategic Claims Services toll-free at (866) 274-4004 or email [email protected]. You can also review the plan of allocation at the official settlement website to calculate your recognized loss.

You can also compare your situation to similar investors in the DiDi Global $740M securities class action settlement, which also involved alleged misstatements to public investors.

How Much Can You Get from the LuxUrban Settlement?

The gross settlement fund is $3,000,000. Before any payments go out, the court will approve deductions for:

• Attorneys’ fees — Lead Counsel Pomerantz LLP is requesting up to 33% ($990,000)
• Litigation expenses — up to $275,000
• Compensatory awards to named plaintiffs — up to $10,000 total
• Administrative costs — notice, claims processing, and taxes on interest

After those deductions, the estimated average net recovery is approximately $0.03 per share of common or preferred stock. The gross average before deductions is approximately $0.05 per share. Your actual legal settlement payout depends on when you bought and sold shares, the specific price inflation on those dates (see Table 1 in the official notice), and how many valid claims are submitted in total.

Shares purchased between May 14, 2024 and August 20, 2024 have their recognized losses reduced by 90% — because the court dismissed the claims related to LuxUrban’s Q1 2024 financial results on July 25, 2025. If your shares fall entirely in that window, your recovery may be minimal. No payment will be issued for any claim totaling less than $10.00.

How to File Your LuxUrban Settlement Claim

Filing your claim is straightforward and takes roughly 10–15 minutes online. Here is exactly how to do it:

Step 1 — Visit the official claim portal at www.strategicclaims.net/LuxUrban

Step 2 — Complete the Proof of Claim and Release form with your full name, address, and account information

Step 3 — Enter your LuxUrban common stock (LUXH) and/or preferred stock (LUXHP) transaction history — purchases, sales, and holdings as of May 8, 2023 and November 18, 2024

Step 4 — Upload documentation — broker confirmations or account statements showing your trades are required; claims without documentation may be delayed or rejected

Step 5 — Sign and submit your claim online, or mail a printed copy postmarked no later than August 10, 2026

Step 6 — Save or screenshot your confirmation number for your records

Estimated time to complete: 10–15 minutes.

If you prefer to mail your form, send it to: LuxUrban Hotels Inc. Securities Settlement, c/o Strategic Claims Services, 600 N. Jackson Street, Suite 205, P.O. Box 230, Media, PA 19063.

LuxUrban Settlement Key Dates

Milestone	Date
Stipulation of Settlement Signed	March 26, 2026
Official Notice Issued	March 31, 2026
Claims Period Opens	April 2026 (portal live)
Claim Filing Deadline	August 10, 2026
Opt-Out Deadline	August 18, 2026
Objection Deadline	August 18, 2026
Final Approval Hearing	September 8, 2026
Expected Payment Date	TBD — several months after final approval, assuming no appeals are filed

Frequently Asked Questions

Is there a class action settlement against LuxUrban Hotels? 

Yes. Former LuxUrban executives Brian Ferdinand and Shanoop Kothari agreed to pay $3,000,000 in the case zCap Equity Fund LLC and Ross Marchetta v. LuxUrban Hotels Inc., No. 1:24-cv-01030-PAE, in the Southern District of New York. The settlement is funded through directors and officers liability insurance.

Do I need to do anything right now to qualify for the LuxUrban settlement?

 Yes — you must submit a claim form. Being a class member does not automatically get you paid. File online at www.strategicclaims.net/LuxUrban or by mail by August 10, 2026. If you do nothing, you receive no payment and you release your claims.

When will I receive my LuxUrban settlement payment? 

Payments go out after the September 8, 2026 final approval hearing and after all claims are processed by Strategic Claims Services. If no appeals are filed, expect payments several months after the hearing. Appeals can extend that timeline by a year or more.

How much will I get from the LuxUrban Hotels settlement?

 The estimated average net recovery is approximately $0.03 per share after attorneys’ fees and costs. Your actual amount depends on when you bought and sold shares, the applicable price inflation figures, and the total number of valid claims filed. Shares purchased between May 14 and August 20, 2024 receive a 90% reduction in recognized loss.

Do I need a lawyer to file a LuxUrban settlement claim? 

No. You can file a legal claim on your own directly at www.strategicclaims.net/LuxUrban at no cost. Attorneys’ fees come out of the settlement fund — not from your individual payment. If you have questions, call Strategic Claims Services at (866) 274-4004.

Is the LuxUrban Hotels settlement legitimate?

 Yes. This is a court-supervised proceeding in the U.S. District Court for the Southern District of New York, authorized by Judge Paul A. Engelmayer. The settlement administrator is Strategic Claims Services, a professional claims administration firm. The notice was issued under court order dated March 31, 2026.

What if I missed the LuxUrban claim deadline?

 The deadline is August 10, 2026. If you miss it, the court will likely bar you from receiving any payment. Contact Strategic Claims Services before the deadline at (866) 274-4004 if you have any concerns about filing in time. Late claims are generally not accepted.

Will my LuxUrban settlement payment be taxed?

 Settlement payments for investment losses may have tax implications depending on your individual situation. The settlement itself does not provide tax advice. Consult a qualified tax professional about how your payment affects your specific tax filing, particularly regarding capital loss treatment.

Sources & References

• Official Settlement Notice and Claim Form — Strategic Claims Services
• Official Settlement Portal — www.strategicclaims.net/LuxUrban

Prepared by the AllAboutLawyer.com Editorial Team and reviewed for factual accuracy against the official settlement notice filed with the U.S. District Court for the Southern District of New York and the Strategic Claims Services settlement website on May 14, 2026. Last Updated: May 14, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.