Case Page

 

Case Status:    SETTLED
On or around 01/20/2016 (Ongoing date of last review)

Filing Date: April 15, 2011

The Complaint asserts violations of the federal securities laws against Universal Travel and its officers and directors for issuing false and misleading information to investors about the financial and business condition of the Company. 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.”

On June 24, 2011, the Court entered an order transferring this case to Judge Susan D. Wigenton.

On July 19, 2012, the Court entered an order appointing lead plaintiff and approving the selection of lead counsel.

On September 7, 2012, the Plaintiffs filed their amended complaint.

On May 1, 2014, the Plaintiffs filed a second amended complaint.

On January 14, 2015, the parties entered into a Stipulation of Settlement.

COMPANY INFORMATION:

Sector: Services
Industry: Personal Services
Headquarters: China

SECURITIES INFORMATION:

Ticker Symbol: UTA
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. New Jersey
DOCKET #: 11-CV-02164
JUDGE: Hon. Katharine S. Hayden
DATE FILED: 04/15/2011
CLASS PERIOD START: 01/19/2010
CLASS PERIOD END: 04/12/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. The Rosen Law Firm (New Jersey)
    236 Tillou Road, The Rosen Law Firm (New Jersey), NJ 07079
    (973) 313-1887 (973) 833-0399 · lrosen@rosenlegal.com
No Document Title Filing Date
COURT: D. New Jersey
DOCKET #: 11-CV-02164
JUDGE: Hon. Katharine S. Hayden
DATE FILED: 05/01/2014
CLASS PERIOD START: 03/12/2009
CLASS PERIOD END: 04/11/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. The Rosen Law Firm (New Jersey)
    236 Tillou Road, The Rosen Law Firm (New Jersey), NJ 07079
    (973) 313-1887 (973) 833-0399 · lrosen@rosenlegal.com
No Document Title Filing Date