CASES
Universal Travel Group, Inc.
Class Period: Jan 19, 2010 to Apr 12, 2011
Lead Plaintiff Deadline: Jun 15, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against Universal Travel Group, Inc. ("UTA" or the "Company") on behalf of all persons or entities who purchased or otherwise acquired the securities of UTA from January 19,2010 through April 12, 2011. This case has been filed in the United States District Court of District of New Jersey.
The Complaint alleges that the Universal Travel misstated (a) the nature and quality of the companies it acquired during the Class Period; and (b) the adequacy of the Company's internal controls. As a result, the Complaint alleges that the Company's periodic reports filed with the SEC and public statements were materially false and misleading. On March 8, 2011 a firm called Glaucus Research Group issued a report (the "Report") setting forth numerous red flags of fraud, ranging from alleged misstatements concerning the Company's online travel business, cash balances, and the Company's purported relationship with a large on-line travel company. 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.
On March 29, 2011 the Company announced that it would postpone its earnings announcement for the fiscal year ended December 31, 2010. On April 12, 2011 trading in the Company's stock was halted. On April 14, 2011, the Company filed an 8-K with the SEC announcing that the Company's auditor had resigned. According to the 8-K, the auditors believed that the Company and/or its Audit Committee was "being non-responsive, unwilling or reluctant to proceed in good faith and imposing scope limitations on [the auditors'] audit procedures." The auditors also noted that they "had lost confidence in the Board of Directors' and the Audit Committee commitment to sound corporate governance and reliable financial reporting.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.