California Attorney Tom Martin’s Law Blog

The Law Office of Thomas Glenn Martin and Green Welling LLP today filed a class action suit in the United States District Court for the Central District of California against New Century Financial Corporation (”New Century Financial”) (NYSE: NEW) and certain of its officers and directors, on behalf of all persons or entities who purchased the common stock of New Century Financial during the period between May 4, 2006 and February 7, 2007, inclusive (the “Class Period”).

A February 7, 2007 New Century Financial press release announced that the Company would restate its consolidated financial results for the quarters ended March 31, June 30, and September 20, 2006 to correct errors in its application of GAAP regarding the Company’s allowance for loan repurchase losses. New Century stated that it expected the impact of the restatement to result in a reduction on net earnings for each of the first three quarters of 2006. On this news, shares of New Century Financial fell 35%, to $19.58 on the New York Stock Exchange.

If you are a shareholder who purchased stock in New Century Financial during the Class Period, you have until April 7, 2007 to move the Court to appoint you as lead plaintiff. Any member of the proposed Class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Lead plaintiffs must meet certain legal requirements.

If you wish to discuss this action, review a copy of the Complaint, or have any questions regarding this matter, you may contact the Law Office of Thomas Glenn Martin by clicking here.

This entry was posted on Thursday, February 22nd, 2007 at 2:48 pm and is filed under Consumer Protection, General Legal, Informational . You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.