Universal Food and Beverage Company ("Universal") is an American company that manufactures and bottles beverages.

According to a news article published June 10, 2008, Universal is facing a class-action Complaint alleging its directors sold $20 million of their preferred stock while artificially propping up the share price.

Plaintiffs contend that the sale of this preferred stock was improperly and fraudulently made by Defendants who are officers and directors of the company.

Plaintiffs want the court to rule on:
(a) whether Defendants' actions as alleged violated the federal securities laws;
(b) whether statements made by Defendants to the investing public during the class period misrepresented material facts about the business, prospects, operations and management of Universal; and
(c) the extent to which the members of the class have sustained damages and the proper measure of damages.

On September 15, 2008, the Plaintiffs filed an Amended Complaint adding claims. On September 24, 2008, a motion hearing was held before Honorable Charles P. Kocoras. At the hearing, the Plaintiffs’ motion to voluntarily dismiss Defendant John Levy without prejudice was granted. On March 10, 2009, the Plaintiffs filed a Second Amended Complaint. On April 7, 2009, the Defendant filed a motion to dismiss for improper venue and motion to dismiss the Second Amended Complaint for failure to state a claim.

On May 29, 2009, the Honorable Charles P. Kocoras ruled that the venue is not proper in this district and the motion to dismiss under Rule 12(b)(3) was granted, without prejudice to refiling in a proper venue. Since the Complaint is no longer extant, the concurrent motion to dismiss for failure to state a claim was denied as moot. On June 3, 2009, the Plaintiffs filed a motion for an order altering or amending the judgment entered on May 29, 2009 and transferring this case to the United States District for the Southern District of New York. According to the minute entry dated June 10, 2009, the Clerk of Court was directed to transfer this case to the United States District Court for the Southern District of New York.

On October 13, 2009, the Defendants filed motions to dismiss the Second Amended Complaint. According to the Joint Stipulation and Proposed Order filed on March 12, 2010, the action has been settled. The settlement must be consummated within thirty days of the date of this order. On March 26, 2010, the action was dismissed with prejudice, with each party to bear their own fees and costs.