HARTFORD, Conn., June 7, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of Massachusetts on behalf of all persons who purchased or otherwise acquired the common stock of Xerium Technologies Inc. ("Xerium" or the "Company") (NYSE:XRM) pursuant and/or traceable to the Company's Initial Public Offering ("IPO") on or about May 16, 2005 through November 15, 2005 (the "Class Period").
The Complaint alleges that defendants violated federal securities laws by issuing materially false statements. Specifically, the Prospectus and Registration Statement (the "Prospectus") issued in connection with the Company's IPO, contained untrue statements, omitted to state other facts and was not prepared in accordance with the rules and regulations governing its preparation. The Complaint alleges that at the time of the IPO, Xerium was undergoing "Cost Reduction Programs" which were negatively impacting its business and forcing it to have customers seek out other producers. Among other things, the Prospectus purported to warn about the potential negative impact of these programs, but failed to disclose that business was then being negatively impacted by the Cost Reduction Programs and the loss of business associated therewith.
On November 14, 2005, Xerium issued a press release announcing its financial results for the third quarter of 2005, the period ending September 30, 2005. The Company also reported that its Cost Reduction Programs had severely impacted its results, causing the Company to experience declining net income. On this news, Xerium common stock dropped from $9.51 per share to $6.85 per share.
If you are a member of the class, you may, no later than August 7, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.