Abbey Spanier Rodd Abrams & Paradis, LLP Commences Class Action Securities Fraud Suit Against New Century Financial Corp. - NEW

NEW YORK, Feb. 9 /PRNewswire/ -- Pursuant to Section 21(D)(a)(A)(i) of the Securities Exchange Act of 1934 (the "Exchange Act"), Abbey Spanier Rodd Abrams & Paradis, LLP a prominent New York law firm specializing in securities litigation, hereby gives notice that it has filed a class action complaint in the United States District Court for the Central District of California (Case No. 07-00931) on behalf of a class (the "Class") of all persons who purchased or acquired securities of New Century Financial Corp. ("New Century Financial" or the "Company") between May 4, 2006 and February 7, 2007 (the "Class Period").

If you would like more information about this case please contact Nancy Kaboolian at Nkaboolian@abbeyspanier.com

The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations during the Class Period thereby artificially inflating the price of New Century Financial securities. The Complaint alleges that the Company's May 4, 2006, July 10, 2006 and November 2, 2006 press releases and its Form 10-Qs for the quarters ending March 31, 2006, June 30, 2006 and September 30, 2006 were all materially false and misleading because the financial statements included in each document did not fairly present the financial condition, results or operations of the Company. Defendants include New Century Financial, Brad A. Morrice (President and CEO), Taj S. Bindra (Executive VP and CFO), Robert K. Cole (Chairman from 1995 to December 2006) and Patti M. Dodge (CFO).

The complaint alleges that during the Class Period defendants knew but failed to reveal that New Century Financial 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. In addition, the Company failed to write-down the value of the loans reacquired, even though these troubled loans had materially declined in value.

On February 7, 2007, New Century Financial shocked the market by announcing 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 re-purchased loans, and had failed to properly reduce the value of the loans repurchased. The Company was forced to admit that its financial statements for the quarters ending March 31, 2006, June 30, 2006 and September 30, 2006 could no longer be relied upon. As a result of the February 7, 2007 revelations, New Century Financial shares slumped to a 52-week low, dropping $10.92, a decline of over 36% on volume of 25 million shares.

Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired New Century securities during the Class Period. If you purchased or otherwise acquired New Century securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased New Century securities during the Class Period, you may, no later than April 10, 2007 request that the Court appoint you as lead plaintiff.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiffs." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.

Abbey Spanier Rodd Abrams & Paradis, LLP has been retained to represent the Class. The attorneys at Abbey Spanier Rodd Abrams & Paradis, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of over one billion dollars for investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact:

Nancy Kaboolian, Esq. or Susan Lee Abbey Spanier Rodd Abrams & Paradis, LLP 212 East 39th Street New York, New York 10016 (212) 889-3700 (800) 889-3701 (Toll Free) Or e-mail slee@abbeyspanier.com