NEW CENTURY FINSNCIAL CORP
Symbol NEW
Investor Notice: KGS Announces Investigation on Behalf of Purchasers of New Century Financial Corp. Preferred Stock
2007-03-10 16:03 ET - News Release
NEW ORLEANS, March 10, 2007 (PRIME NEWSWIRE) -- Kahn Gauthier Swick, LLC announces that it has commenced an investigation into New Century Financial Corp. ("New Century" or the "Company") to determine whether it has violated federal securities laws by selling Preferred Stock pursuant to materially false and misleading prospectuses in or about June 2005 ($116.79 million offering of Series A Preferred Stock) and August 2006 ($62.85 million offering of Series B Preferred Stock) (NYSE:NEW-PA) (NYSE:NEW-PB).
On February 7, 2007, New Century announced that it will have to restate its previously reported financial results to correct errors related to its application of generally accepted accounting principles, necessary for reporting allowances for loan repurchase losses. On this news, New Century's Preferred shares declined precipitously.
Later, on March 2, 2007, New Century also disclosed that the U.S. Attorney's Office for the Central District of California had notified the Company that it is conducting a criminal inquiry in connection with trading in New Century's stock, and its accounting. The following trading day, New Century's Preferred Shares again declined.
If you would like to discuss your legal rights as a Preferred shareholder, you may e-mail or call KGS, without obligation or cost to you. You may contact Managing Partner Lewis Kahn of KGS direct, toll free 1-866-467-1400, ext. 100, or by email at
lewis.kahn@kgscounsel.com. KGS focuses its practice on securities fraud litigation, and the firm's lawyers have significant experience working on securities fraud cases that have resulted in significant recoveries for shareholders. For more information on KGS, please visit
www.kgscounsel.com.
CONTACT: Kahn Gauthier Swick, LLC
Lewis Kahn
1-866-467-1400, Ext. 100
lewis.kahn@kgscounsel.com
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