VERO BEACH, Fla., March 30, 2007 (PRIME NEWSWIRE) -- The Law Offices of Bruce G. Murphy, which filed a class action suit in the United States District Court for the Central District of California against New Century Financial Corporation ("NEW" or the "Company")(Pink Sheets:NEWC) and certain of its officers and directors, on behalf of all persons or entities who purchased the publicly traded securities of NEW, reminds investors of the lead plaintiff deadline of April 10, 2007 and updates investors on the class action litigation pending against NEW.
The complaint alleges that the Company and certain of its executives violated the federal securities laws during a proposed class period of May 4, 2006 through February 7, 2007. Subsequently, additional securities class actions have been filed that have expanded the class period so that investors who purchased NEW publicly traded securities between April 7, 2006 and March 2, 2007 are members of the proposed class.
On March 2, 2007, NEW disclosed in a filing with the Securities & Exchange Commission on Form 8-K that: 1) "(t)he staff of the SEC has requested a meeting with the Company to discuss the events leading up to the announcement of the restatements . . . ."; 2) "the Company received a letter dated February 21, 2007 from the NYSE Regulation Inc. indicating that its Market Trading Analysis Department is reviewing transactions in the Company's securities prior to the February 7, 2007 announcement of the restatement process"; and 3) "(o)n February 28, 2007, the Company received a letter from the United States Attorney's Office for the Central District of California (the "U.S. Attorney's Office") indicating that it was conducting a criminal inquiry under the federal securities laws in connection with trading in the Company's securities, as well as accounting errors regarding the Company's allowance for repurchase losses."
The following trading day, NEW shares declined from a closing price on March 2, 2007 of $14.65 per share, to close at $4.56 per share at the close of trading on March 5, 2007, a decline of $10.09 per share or approximately 69%, on heavier than usual volume.
If you are a member of the proposed Class, you may move the court no later than April 10, 2007 to serve as a lead plaintiff for the Class. You need not seek to become a lead plaintiff in order to share in any possible recovery.
If you have any questions about this Notice, the action, your rights, or your interests, please e-mail or contact:
Bruce G. Murphy, Esq. Law Offices of Bruce G. Murphy 265 Llwyds Lane Vero Beach, FL 32963 (772) 231-4202 (772) 231-7222(fax) bgm@brucemurphy.biz
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca.