Bank accuses Planet Hollywood of making fraudulent claims in dispute over Paycheck Protection Program funds
In a shocking turn of events, Planet Hollywood and its affiliated companies have filed a lawsuit against Miami-based BankUnited over approximately $6 million in Paycheck Protection Program (PPP) debt. The lawsuit, filed in July 2025, alleges that BankUnited misled the entertainment company regarding the PPP loan under the CARES Act[1][2][3].
The lawsuit contends that the Small Business Administration's May 4, 2020, interim final rule did not apply retroactively to loans disbursed before April 30, 2020. However, BankUnited allegedly forced the plaintiffs to abandon the original loan and enter separate loan agreements for each entity with different federal Employer Identification Numbers[1]. This action, the lawsuit states, resulted in the restructured loans falling under the Small Business Administration's $20 million single corporate group cap, making them ineligible for forgiveness[3].
The plaintiffs allege that BankUnited had more knowledge and expertise than Planet Hollywood regarding banking, the CARES Act, and PPP, and had access to information and SBA staff[2]. As a result, but for BankUnited's actions, the original loan would have qualified for forgiveness by the SBA, leaving the plaintiffs with millions of dollars in debt[1].
Planet Hollywood and Planet Hollywood International received a consolidated PPP loan of over $7 million, funded on April 20, 2020. However, BankUnited allegedly earned over $125,000 in additional loan origination fees by forcing the creation of seven new separate loans[1].
The lawsuit claims that the COVID-19 pandemic-era economic stimulus would have saved at least $4.5 million, but for the alleged fraud, negligence, and misrepresentations of BankUnited[3]. It is important to note that no new regulations or policies are mentioned in the text.
The LAX location of Planet Hollywood permanently closed in April 2025, and in April 2025, PB Restaurants, the operator of Planet Hollywood restaurants in New York City's Times Square and Los Angeles International Airport, filed for Chapter 11 bankruptcy[2]. Planet Hollywood has previously filed for Chapter 11 bankruptcy twice, in 1999 and October 2001[1].
As of May 2025, three Planet Hollywood restaurants remain operational[2]. The details of the lawsuit’s outcome are not yet publicly available, as the reports from late July 2025 only cover the filing of the suit and do not mention any resolution or court decision at this time[1][2][3].
[1] - [Source 1] (Link to the source) [2] - [Source 2] (Link to the source) [3] - [Source 3] (Link to the source)
- The business dispute between Planet Hollywood and Miami-based BankUnited revolves around a $6 million debt from the Paycheck Protection Program (PPP) loans, with the entertainment company alleging misleading practices by the bank.
- The altercation over the PPP loan, which stems from the CARES Act, led to the restructuring of the loans, causing them to fall under the Small Business Administration's $20 million single corporate group cap and making them ineligible for forgiveness, according to the lawsuit.
