Robbins Umeda LLP Announces the Filing of a Class Action Lawsuit Against Universal Travel Group, Inc.
Robbins Umeda LLP, a shareholder rights litigation firm, has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Universal Travel Group, Inc. (NYSE: UTA). Universal Travel 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. Universal Travel was founded in 1984, is headquartered in China, and is incorporated in Nevada.
Robbins Umeda LLP’s investigation focuses on whether the officers and directors of Universal Travel harmed the company by issuing false and misleading statements in the company’s filings with the U.S. Securities and Exchange Commission (“SEC”) concerning its financial condition and internal controls.
On March 8, 2011, Glaucus Research Group issued a report alleging that Universal Travel was fabricating its financial statements filed with the SEC, and that its underlying business was smaller than reported in its SEC filings. The report also revealed that the financial statements filed with authorities in China concerning the companies Universal Travel acquired in 2010 were 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 Travel’s stock was halted. On April 14, 2011, Universal Travel announced that its independent auditor, Windes & McClaughry Accountancy Corporation had resigned, 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.”
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