NEW YORK, March 16, 2007 (PRIME NEWSWIRE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomlaw.com) ("Pomerantz") reminds investors of New Century Financial Corporation ("New Century" or the "Company") (Pink Sheets:NEWC) that the deadline to ask the Court to appoint you as Lead Plaintiff is April 10, 2007. Pomerantz filed a class action lawsuit in the United States District Court, Central District of California, against New Century and certain officers, on behalf of purchasers of the common stock of the Company during the period from May 4, 2006 through February 7, 2007, inclusive (the "Class Period"). The complaint alleges violations of Section 10(b) and Section 20(a) of the Securities Exchange Act, and Rule 10b-5 promulgated there under.
New Century is a real estate investment trust and mortgage finance company with headquarters in Irvine, CA. The Company operates nationwide through its mortgage origination subsidiaries, New Century Finance Corporation and Home123 Corporation. The Complaint alleges that Defendants materially overstated earnings, understated loan repurchases losses, failed to establish a sufficient loan repurchase loss reserve, and violated Generally Accepted Accounting Principles ("GAAP") in various press releases and quarterly reports filed with the SEC.
In particular, defendants: (1) failed to include the expected discount upon disposition of loans when estimating allowances for loan repurchase losses; and (2) refused to properly consider the increasing volume of repurchase requests and thereby failed to apply the proper methodology for estimating the volume of anticipated repurchase claims for calculating the repurchase reserve calculation. On February 7, 2007 Defendants issued a press release admitting that they had failed to properly apply GAAP, withdrawing reliance on the previously-filed 10-Q quarterly reports for the first three quarters of 2006, and conceding that they would have to materially restate New Century's financials to reflect the proper accounting for loan repurchase losses.
If you are a shareholder who purchased the securities of New Century during the Class Period, you have until April 10, 2007 to ask the Court to appoint you as lead plaintiff for the class. Lead plaintiffs must meet certain legal requirements. Shareholders outside the United States may join the action, regardless of where they live or which exchange was used to purchase the securities. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Teresa L. Webb (tlwebb@pomlaw.com) or Carolyn S. Moskowitz (csmoskowitz@pomlaw.com) of the Pomerantz Firm at 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, which has offices in New York, Chicago, Washington, D.C. and the San Francisco Bay Area, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. For more information about the Firm, visit our web site at www.pomlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca