| Company: | Universal Travel Group, Inc. |
| Ticker Symbol: | UTA |
| Class Period: | Jan-19-10 to Apr-12-11 |
| Date Filed: | Apr-18-11 |
| Lead Plaintiff Deadline: | Jun-17-11 |
| Court: | District of New Jersey |
| Allegations: | |
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 acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
