The Rosen Law Firm, P.A. Announces Proposed Class Action Settlement on Behalf of Purchasers of Common Stock of Universal Travel Group, Inc. -- UTRA

January 30, 2017

NEWARK, N.J., Jan. 30, 2017 (GLOBE NEWSWIRE) -- The Rosen Law Firm, P.A. announces that the United States District Court for the District of New Jersey has approved the following announcement of a proposed class action settlement that would benefit purchasers of common stock of Universal Travel Group, Inc. (OTCBB:UTRA):

SUMMARY NOTICE OF PENDENCY AND PROPOSED CLASS ACTION SETTLEMENT

TO:    If you bought the publicly-traded common stock of Universal Travel Group, Inc., from March 12, 2009, through and including April 11, 2011, you could get a payment from a class action settlement.

A settlement has been proposed in a class action lawsuit brought on behalf of investors in Universal Travel Group, Inc. (“UTG”) common stock. The settlement will pay $4,075,000 to pay claims of investors who bought UTG stock between March 12, 2009 and April 11, 2011, both dates inclusive. If you qualify, you may send in a claim form to get benefits, or you can exclude yourself from the settlement, or object to it. The United States District Court for the District of New Jersey authorized this notice. Before any money is paid, the Court will have a hearing to decide whether to approve the settlement.

WHO’S INCLUDED?

You are a Class Member and could get benefits if you bought UTG common stock between March 12, 2009 and April 11, 2011. You are a Class Member if you bought shares of UTG stock individually and not simply through a mutual fund. UTG, its employees, and their family members are not Class Members. Contact your broker to see if you had shares of UTG stock.  If you’re not sure you are included, you can get more information, including a detailed notice, at www.strategicclaims.net or by calling toll free 866-274-4004.

WHAT’S THIS ABOUT?

The lawsuit claims that UTG and certain of its officers and directors made public false statements overstating UTG’s revenues and income, falsely claimed that UTG owned its subsidiaries, falsely claimed that UTG sold poorly performing business assets at a profit, and misled investors about the use of proceeds from several offerings. The lawsuit claims that UTG’s auditor falsely claimed that it conducted its audit in accordance with applicable professional standards. Defendants deny that they did anything wrong.  The Court did not decide which side was right.  But both Defendants and Plaintiffs agreed to the settlement to resolve the case and get benefits to investors.  Plaintiffs and Defendants disagree on what the outcome of a trial would have been and how much money could have been won if the investors had won at a trial.

WHAT DOES THE SETTLEMENT PROVIDE?

Defendants agreed to create a fund of $4.075 million to be divided among all Class Members who send in valid claim forms.  A Stipulation of Settlement, available at www.strategicclaims.net, describes all of the details about the proposed settlement.

Your share of the fund will depend on the number of valid claim forms that Class Members send in, how many shares of UTG stock you bought, and when you bought and sold them.  Generally, if you bought more shares and have more Recognized Losses (as explained in the detailed notice), you will get more money.  If you bought fewer shares and have fewer Recognized Losses, you will get less.  All of the $4.075 million will be paid out. 

If every eligible Class Member sends in a valid claim form, the average payment will be $0.205 per share for each share of UTG stock outstanding as of April 11, 2011, before deduction of attorneys’ fees and expenses, and approximately $0.132 per share after deduction of attorneys’ fees and expenses.  The number of claimants who send in claims varies widely from case to case.  If less than 100% of the Class sends in a claim form, you will get more money.

HOW DO YOU ASK FOR A PAYMENT?

A detailed notice and claim form package contains everything you need.  Just call 866-274-4004 or visit  www.strategicclaims.net to get one.  To qualify for a payment, you must send in a claim form.  Claim forms are due by March 18, 2017.

WHAT ARE YOUR OTHER OPTIONS?

If you don’t want to be legally bound by the settlement, you must exclude yourself by May 16, 2017, or you won’t be able to sue or continue to sue Defendants about the legal claims in this case.  If you exclude yourself, you can’t get money from this settlement. If you stay in the settlement, you may object to it by May 16, 2017.  The detailed notice explains how to exclude yourself or object.

The Court will hold a hearing in this case (Snellink v. Universal Travel Group, Inc., Case No. 11-cv-2164) on June 6, 2017, to consider whether the approve the settlement and a request by the lawyers representing all Class Members (The Rosen Law Firm, P.A., of New York, NY) for attorneys’ fees of not more than one-third of the Settlement Amount (or $1,358,333), reimbursement of total litigation expenses of no more than $80,000, and an award to the Class Plaintiffs not to exceed $20,000 (or $4,000 for each of the five Class Plaintiffs).  Collectively, the attorneys’ fees and expenses are estimated to average $0.073 per share of UTG Stock.  You may ask to appear at the hearing, but you don’t have to. 

For more information, call toll-free 866-274-4004 visit the website at www.strategicclaims.net., or write to Universal Travel Group, Inc. Litigation, c/o Strategic Claims Services, 600 N. Jackson St., Ste. 3, P.O. Box 230, Media, PA 19063.