MINNEAPOLIS, Feb. 21, 2007 (PRIME NEWSWIRE) -- Charles H. Johnson & Associates announces that a class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of New Century Financial Corp. ("New Century") (NYSE:NEW) publicly traded securities during the period May 4, 2006 through February 7, 2007 (the "Class Period).
If you are a member of the proposed Class, you may move the court to serve as a lead plaintiff for the Class on or before April 10, 2007. You do not need to be a lead plaintiff in order to share in any recovery that may be obtained.
The Complaint alleges that New Century and certain of its officers and directors violated Federal securities laws. Specifically, the Complaint alleges that defendants made false and misleading statements concerning the Company's operations and financial results for the first three quarters of 2006. New Century is a mortgage finance company that makes a substantial number of residential mortgage loans. It does not hold these loans but sells the loans to banks and investors. The purchasers can require New Century to repurchase loans which become troubled.
During the Class Period defendants failed to disclose that New Century 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. On February 7, 2007, New Century announced that it was going to restate its financial results for the first three quarters of 2006 because the Company had failed to account for all of the repurchased loans, and had failed to properly reduce the value of the loans repurchased. The Company was forced to admit that its financial statements could no longer be relied upon. On this news, New Century shares fell $10.92, a decline of over 36%, to close at $19.24.
If you purchased New Century Financial Corp. securities during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Neil Eisenbraun, Esq. (cjohnsonlaw@gmail.com)
Charles H. Johnson & Associates
2599 Mississippi Street
New Brighton, MN 55112
(651) 633-5685
More information on this and other class actions can be found on the Class Action Newswline at www.primenewswire.com/ca