Rigrodsky & Long, P.A. Announces Class Action Lawsuit Against Universal Travel Group, Inc. - UTA
20 Abril 2011 - 12:17PM
Business Wire
Rigrodsky & Long, P.A. announces that a class action lawsuit
has been filed in the United States District Court for the District
of New Jersey on behalf of all persons or entities who purchased or
otherwise acquired the stock of Universal Travel Group, Inc.
(“Universal Travel” or the “Company”) (NYSE: UTA) between January
19, 2010 and April 12, 2011, inclusive (the “Class Period”),
alleging violations of the Securities Exchange Act of 1934 (the
“Complaint”).
If you wish to discuss this action or have any questions
concerning this notice or your rights or interests, please contact
Timothy J. MacFall, Esquire or Noah R. Wortman, Case Development
Director of Rigrodsky & Long, P.A., 919 North Market Street,
Suite 980 Wilmington, Delaware, 19801 at (888) 969-4242, by e-mail
to info@rigrodskylong.com, or via our website:
http://www.rigrodskylong.com/news/Universal Travel Group - UTA.
The Complaint names Universal Travel, certain of the Company’s
current executive officers and directors as defendants. Universal
Travel, together with its subsidiaries, operates as a travel
service provider offering air ticketing and hotel booking services,
as well as domestic and international packaged tourism services via
the Internet, customer representatives, and kiosks in the People’s
Republic of China.
The Complaint alleges that the Company and certain of its
officers and directors issued materially false and misleading
information in its filings with the United States Securities and
Exchange Commission (“SEC”) concerning the Company’s financial
condition and internal controls.
On March 8, 2011 a research firm called Glaucus Research Group
issued a report setting forth numerous red flags of fraud at UTA
(the “Report”) alleging that UTA was actually fabricating its
publically filed financial statements with the SEC and that its
underlying business was far smaller than reported in its SEC
filings. Among other things, the Report also revealed that the
financial statements of the companies Universal Travel acquired in
2010 that were filed with authorities in China showed only a
fraction of the revenue, asset value and income, contrary to the
statements Universal Travel made to investors about the acquired
companies. Subsequently, on March 29, 2011 Universal Travel
announced that it would postpone its earnings announcement for the
fiscal year ended December 31, 2010.
On April 12, 2011, Universal Travels’ stock was halted and, to
date, has not resumed. Two days later, on April 14, 2011 the
Company announced that its independent auditor, Windes &
McClaughry Accountancy Corporation (“Windes”) had resigned. Windes
informed the Company in its resignation letter that it was no
longer able to complete its audit process. Windes stated this was
due in part to “Management and/or the Audit Committee being
non-responsive, unwilling or reluctant to proceed in good faith and
imposing scope limitations on Windes’ audit procedures.” Windes
also stated that it “had lost confidence in the Board of Directors’
and the Audit Committee’s commitment to sound corporate governance
and reliable financial reporting.”
If you wish to serve as lead plaintiff, you must move the Court
no later than June 15, 2011. A lead plaintiff is a representative
party acting on behalf of other class members in directing the
litigation. In order to be appointed lead plaintiff, the Court must
determine that the class member’s claim is typical of the claims of
other class members, and that the class member will adequately
represent the class. Your ability to share in any recovery is not,
however, affected by the decision whether or not to serve as a lead
plaintiff. Any member of the proposed class may move the court to
serve as lead plaintiff through counsel of their choice, or may
choose to do nothing and remain an absent class member.
While Rigrodsky & Long, P.A. did not file the Complaint in
this matter, the firm, with offices in Wilmington, Delaware and
Garden City, New York, regularly litigates securities class,
derivative and direct actions, shareholder rights litigation and
corporate governance litigation, including claims for breach of
fiduciary duty and proxy violations in the Delaware Court of
Chancery and in state and federal courts throughout the United
States.
Attorney advertising. Prior results do not guarantee a similar
outcome.
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