The Nightfall Group lawsuit is a civil enforcement case brought by the City of Los Angeles against a luxury short-term rental company it accuses of running “party houses” in residential neighborhoods. The City says the company and its partners broke LA’s short-term rental and party house rules. The company’s owner has denied the allegations. Here is what the case is about, who is involved, what has been settled so far, and what it means for hosts, homeowners, and neighbors.
Nightfall Group lawsuit at a glance
| Detail | What we know |
|---|---|
| Case | City of Los Angeles enforcement action, Civil Case No. 23STCV19069 |
| Court | Los Angeles Superior Court, Department 86 (Stanley Mosk Courthouse) |
| Filed | August 2023, announced by the City Attorney on August 15, 2023 |
| Brought by | Los Angeles City Attorney Hydee Feldstein Soto |
| Main defendants | Ultimate Host, LLC, doing business as The Nightfall Group, and its owner Mokhtar Jabli, plus several property owners |
| Laws cited | LA’s Home-Sharing (Short-Term Rental) Ordinance and Party House Ordinance; reporting also cites unfair competition and public nuisance claims |
| What the City wants | A court order to stop the alleged violations, plus civil penalties of up to $2,500 per violation of each ordinance |
| Settlements so far | Three property-owner defendants settled in 2025 for a combined $280,000 in penalties |
| Status | The City said in September 2025 that litigation with the remaining defendants was still pending |
What is The Nightfall Group?
The Nightfall Group describes itself as a luxury concierge and rental business. According to Los Angeles Times reporting, the Beverly Hills-based company offers high-end homes across Los Angeles to wealthy short-term guests, at prices that can reach about $16,000 a night. The Real Deal reported that the business model involves leasing mansions from their owners and then renting them out for short stays.
That model is at the center of the case. Los Angeles allows short-term rentals only under specific rules, and the City argues that many of the homes Nightfall operated did not qualify.
What the City of Los Angeles alleges
In its August 2023 announcement, the City Attorney’s office said it had sued Ultimate Host, LLC (doing business as The Nightfall Group), Mokhtar Jabli, and property owners connected to the rentals. The main claims are:
- Illegal short-term rentals. The City says the homes were rented for short stays in violation of the Home-Sharing Ordinance. Under the City Planning rules, hosts must register with the City, may rent only their own primary residence, and are generally limited to 120 days a year unless approved for Extended Home-Sharing. Rent-stabilized units are not allowed.
- Party house violations. The City says the properties hosted large, loud gatherings that the Party House Ordinance is meant to prevent.
- Harm to neighborhoods. The City Attorney said such party houses have serious effects on residents’ quality of life, including noise, disruption, and blocked streets and evacuation routes in hillside areas.
- Lost housing. The City also argues that illegal short-term rentals take homes off the long-term rental market.
Reporting by The Real Deal added that the complaint includes claims under California’s unfair competition law and public nuisance law.
Police calls and neighborhood complaints
News coverage at the time described the scale of the problem neighbors reported. The Los Angeles Times reported more than 250 police calls over two years in the Hollywood area tied to the company’s rentals, and 95 calls at six Nightfall-associated addresses over three years. Most of the affected homes were in the Hollywood Hills, where narrow streets make traffic and parking problems worse during large events.
These figures come from news reports describing the City’s case. They are allegations and supporting details, not findings by a court.
What Nightfall and its owner have said
Mokhtar Jabli denied the allegations when contacted by The Real Deal. The Los Angeles Times reported that he described problem parties as one-time occurrences. We have not found a public court ruling against the company or Jabli. As in any lawsuit, the City’s claims are allegations unless a court decides otherwise or a defendant agrees to a settlement.
Separately, The Real Deal reported that Jabli faced other lawsuits from property owners, including one filed in February 2023 that alleged more than $122,600 in damages. That is a private dispute and is not part of the City’s case.
Settlements: what has been resolved so far
On September 2, 2025, the City Attorney announced settlements with three defendants in the case. All three were property-owner defendants, not The Nightfall Group or Jabli:
| Settling defendant | Civil penalty |
|---|---|
| Kirill “Kirk” Ayzenberg (individually and as trustee of the Gabriel Mark Trust) | $215,000 |
| 5554 Green Oak, LLC | $45,000 |
| Jungle Kerry, Inc. | $20,000 |
| Total | $280,000 |
Under the settlements, these defendants are barred from operating short-term rentals that violate the City’s Home-Sharing Ordinance, and they must tell guests that loud parties are not allowed. The City said litigation with the other defendants was still pending.
Where the Nightfall Group lawsuit stands now
As of October 2026, we could not find a public announcement of a final judgment or settlement involving Ultimate Host, LLC (The Nightfall Group) or Mokhtar Jabli. The City’s most recent public update on the case, from September 2025, described that part of the litigation as pending. Court cases can change quickly, so check the LA City Attorney’s website or the Los Angeles Superior Court’s online case access for case number 23STCV19069 for the latest filings.
We will update this article when there is a new ruling, settlement, or official announcement. For more cases like this, see our Lawsuits coverage.
Is this a class action? Can I join or get money?
No. This is not a class action, and there is no claim form or settlement fund for the public. It is an enforcement case brought by the City to stop alleged violations and collect civil penalties, which are paid to the City rather than to individual residents or guests.
If you believe you were personally harmed, for example as a guest, a property owner who leased a home to the company, or a neighbor, any claim would be a separate matter. A licensed California attorney can tell you whether you have one and what deadlines apply. Our legal disclaimer explains why this article is general information only.
What this case means for hosts and property owners
The case shows how Los Angeles enforces its short-term rental rules against everyone in the chain, not only the operator. The City named property owners alongside the rental company, and three of those owners paid penalties. If you own property in Los Angeles, keep these points in mind:
- Leasing your home to an operator does not shift all the risk. Owners can be named as defendants if their homes are used as illegal short-term rentals or party houses.
- Registration and residency rules matter. LA’s Home-Sharing program requires hosts to register, post their registration number on every listing, and rent only their primary residence. For more plain-English explainers, see our Legal Guides.
- Penalties add up per violation. The City sought up to $2,500 per violation of each ordinance, which can grow quickly across many rental nights.
- Read rental and management agreements closely. Check what the operator is allowed to do, who is responsible for permits, and how parties and occupancy limits are controlled.
What neighbors can do about party houses
If a nearby home is hosting loud parties or appears to be an unpermitted short-term rental in Los Angeles:
- For noise or safety problems happening now, call the LAPD non-emergency line at 1-877-ASK-LAPD (1-877-275-5273), or 911 in an emergency.
- Report suspected illegal short-term rentals to the City Planning Home-Sharing Unit’s 24/7 hotline at (213) 267-7788 or by email at planning.home-sharing@lacity.gov, as listed on the City Planning website.
- Keep a simple record of dates, times, photos, and police report numbers. Records like these help the City build enforcement cases.
Other Los Angeles short-term rental cases
The Nightfall Group lawsuit is part of a wider push by the LA City Attorney against illegal short-term rentals and party houses. Two other cases show the same pattern:
- The $62 million case (March 2025). The City Attorney sued a separate group of operators (Case No. 25STCV07712), accusing them of running dozens of unpermitted short-term rentals and of price gouging after the January 2025 Palisades and Eaton fires. The Nightfall Group is not a defendant in that case.
- The Franklin Apartments settlement (2025). In the same September 2025 announcement as the Nightfall settlements, the City said the owners of an apartment building at 6871 Franklin Avenue agreed to pay $150,000 in civil penalties and return at least 10 rent-stabilized units to the long-term rental market (Case No. 25STCV22426).
Together, these cases show that the City pursues operators, property owners, and landlords alike, and that penalties can reach six figures or more.
Frequently asked questions
Who filed the Nightfall Group lawsuit?
The Los Angeles City Attorney’s office, led by Hydee Feldstein Soto, filed the case in August 2023 on behalf of the City of Los Angeles.
Who are the defendants?
Ultimate Host, LLC, doing business as The Nightfall Group; its owner Mokhtar Jabli; and property owners whose homes were allegedly used as short-term rentals.
Has Nightfall Group been found liable?
We have not found a public ruling finding the company or its owner liable. Jabli denied the allegations. Three property-owner defendants settled in 2025 without the case against the company being resolved.
How much has been paid in settlements?
The City announced a combined $280,000 in civil penalties from three settling defendants in September 2025.
Is the Nightfall Group lawsuit the same as the $62 million LA short-term rental case?
No. In March 2025 the City Attorney filed a separate lawsuit seeking about $62 million against a different group of short-term rental operators, which also involved alleged price gouging after the January 2025 wildfires. That case does not name The Nightfall Group.
Sources
- LA City Attorney: City Attorney Hydee Feldstein Soto Targets Problem Party Houses and Short-Term Rentals (August 15, 2023)
- LA City Attorney: Continues Crackdown on Illegal Short Term Rentals and Party Houses (September 2, 2025)
- The Real Deal: LA City Attorney sues luxe short-term rental firm Nightfall Group (August 15, 2023)
- Los Angeles Times (via AOL): L.A. sues ‘luxury rentals’ company over party house blowouts (August 16, 2023)