LOS ANGELES—Companies allegedly associated with a fugitive Chinese billionaire, including one firm found guilty of wire fraud and other federal charges, argue in new court papers for dismissal of a lawsuit brought by two lessees at the L.A. Grand Hotel Downtown whose owners are critical of its conversion into a homeless shelter.
The Los Angeles Superior Court lawsuit was filed by the nonprofit Academy of Media Arts and the still unopened ROME Nightclub against Wei Huang, Shen Zhen New World I LLC, and other defendants allegedly connected to Mr. Huang. The complaint alleges fraud, breach of contract and the covenant of good faith and fair dealing, negligence, and interference with contractual relations and prospective economic advantage.