LOS ANGELES, Feb. 16, 2007 (PRIME NEWSWIRE) -- Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a Class Action lawsuit in the United States District Court for the Central District of California on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired securities of New Century Financial Corporation ("New Century Financial" or the "Company") (NYSE:NEW) between May 4, 2006 and February 7, 2007, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges New Century Financial and certain of the Company's executive officers and directors with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and dissemination of materially false and misleading statements concerning the Company's financial performance caused New Century Financial's stock price to become artificially inflated, inflicting damages on investors. New Century Financial operates in the United States as a real estate investment trust which originates and purchases mortgage loans. The Complaint alleges that during the Class Period defendants knew but failed to disclose that New Century Financial was being forced to buy back substantially more loans than originally had been expected. Despite knowing of the surge in forced loan repurchases, the defendants failed to properly account for them. In addition, the Company failed to write-down the value of the loans reacquired, even though these troubled loans had materially declined in value.
On February 7, 2007, New Century Financial shocked the market by announcing that it would restate its financial results for the first three quarters of 2006 because the Company had failed to account for all of the re-purchased loans and had failed to properly reduce the value of the loans repurchased. The Company was forced to admit that its financial statements for the quarters ending March 31, 2006, June 30, 2006 and September 30, 2006 could no longer be relied upon. As a result of the February 7, 2007 revelations, New Century Financial shares slumped to a 52-week low, dropping $10.92 -- a decline of more than 36%, on volume of 25 million shares.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than April 10, 2007, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca.