NEW YORK, March 18, 2014 /PRNewswire/ -- Milberg LLP announces that class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of purchasers of UTI Worldwide, INC., ("UTi" or the "Company") (NASDAQ: UTIW) common stock during the period between December 5, 2013 and February 25, 2014 (the "Class Period").
The lawsuit alleges that the Company and its CEO, and CFO violated the federal securities laws by failing to disclose, that UTi was experiencing a cash crunch and was rapidly depleting its lines of credit because of problems experienced with the rollout of its new freight forwarding operating and global financial systems.
The Company's failed to disclose that their liquidity problems were so severe that UTi was forced to engage in a heavily dilutive offering of convertible notes and preferred shares totaling over $500 million to provide the Company with emergency financing.
On February 26, 2014, UTi announced it had breached certain debt covenants and was in danger of defaulting unless it carries out a recapitalization plan.On this news, the price of UTi's common stock fell $4.52, to close at $10.74, an almost 30% drop representing a market capitalization loss in excess of $45 million. If you purchased UTi shares during the Class Period you may, no later than May 16, 2014, request that the Court appoint you lead plaintiff. A lead plaintiff is a class member that directs the litigation. Your share in any recovery will not be affected by serving as a lead plaintiff. You do not need to be a lead plaintiff to recover. You may retain Milberg LLP, or other attorneys, for this action, but do not need to retain counsel to recover. If this action is certified as a class action, class members will be automatically represented by Court-appointed counsel. The complaints in these actions were not filed by Milberg. If you would like to learn more about this potential matter, please fill out the form on the right or contact the following attorney: