A group of Chinese investors are alleging The SLS Las Vegas hasn’t turned a profit since opening in 2014 and is on the verge of bankruptcy, according to a lawsuit filed in Los Angeles County this week.
Sixty Chinese investors lent roughly $400 million to the project in 2013 in exchange for American citizenship.
In the class action case, none of the 60 individuals have received their permanent green card, and the plaintiffs are seeking $255 million in damages.
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In May, Stockbridge Capital Group agreed to sell the hotel to Meruelo Group, who is now seeking to renegotiate the loans from the Chinese investors.