WESTON, Fla., March 7, 2007 (PRIME NEWSWIRE) -- The law firm of Mager & Goldstein LLP announces it has filed a class action lawsuit in the U.S. District Court for the Central District of California on behalf of all purchasers of securities of New Century Financial Corporation ("New Century" or the "Company") (NYSE:NEW) between May 4, 2006 and March 2, 2007, inclusive (the "Class Period").
The Complaint alleges that defendants violated federal securities laws by issuing materially false and misleading statements during the Class Period which resulted in artificially inflating the value of New Century stock. New Century did not properly account for home loans it had to repurchase and as a result its net earnings were materially overstated for the periods ended March 31, June 30 and September 30, 2006.
On February 7, 2007 defendants shocked investors by revealing that the Company would have to restate its financial results. Then on March 2, 2007, following the close of the market, New Century disclosed that it had received notification from the U.S. Attorney's Office that it was conducting a criminal inquiry in connection with trading of New Century's stock and into the Company's accounting errors regarding accounting for its repurchase losses. As a result of New Century's stunning revelations, the price of New Century's stock initially plummeted over 35 percent. Following its revelation on March 2, 2007 that it faced investigation of its accounting and stock trading, shares of New Century crashed by more than 68 percent.
If you bought New Century securities between May 4, 2006 and March 2, 2007 and sustained damages, you may, no later than April 10, 2007, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative who acts on behalf of other class members in directing the litigation. Under certain circumstances, several class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by whether or not you serve as lead plaintiff. You may retain Mager & Goldstein LLP, or other counsel, to represent you in this action.
Mager & Goldstein has offices in Pennsylvania and Florida. The firm's attorneys have been litigating complex commercial matters for over twenty years.
If you wish to discuss the lawsuit against New Century with us, or have any questions about this notice or your legal rights with regard to this case, please contact the following attorneys:
Jayne Arnold Goldstein 1640 Town Center Circle, Suite 216 Weston, FL 33326 Tel: (954) 515-0123 Fax: (954) 515-0124 866-284-3280 Toll Free E-mail: jgoldstein@magergoldstein.com Lee Albert One Liberty Place, 21st Floor 1650 Market Street Philadelphia, PA 19103 Tel: (215) 640-3280 Fax: (215) 640-3281 866-284-3280 Toll Free Email: lalbert@magergoldstein.com
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca