Summary Notice of Pendency of Class Action In Re New Century Securities Litigation

News provided by

Bernstein Litowitz Berger & Grossmann LLP

Aug 24, 2010, 09:00 ET

NEW YORK, Aug. 24 /PRNewswire/ -- Bernstein Litowitz Berger & Grossmann LLP is issuing the following statement regarding the New Century Action:

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA

IN RE NEW CENTURY (Other OTOTC: NEWCQ) (Other OTOTC: NEWXQ) (Other OTOTC: NEWOQ) SECURITIES LITIGATION, 2:07-cv-00931-DDP (FMOx)(Lead Case)

Summary Notice

TO: ALL PERSONS AND ENTITIES WHO PURCHASED OR ACQUIRED NEW CENTURY COMMON STOCK; NEW CENTURY 9.125% SERIES A CUMULATIVE REDEEMABLE PREFERRED STOCK ("SERIES A PREFERRED STOCK"); NEW CENTURY 9.75% SERIES B CUMULATIVE REDEEMABLE PREFERRED STOCK ("SERIES B PREFERRED STOCK"); AND/OR NEW CENTURY CALL OPTIONS AND/OR WHO SOLD NEW CENTURY PUT OPTIONS DURING THE TIME PERIOD FROM MAY 5, 2005, THROUGH MARCH 13, 2007, INCLUSIVE

YOU ARE HEREBY NOTIFIED pursuant to Rule 23 of the Federal Rules of Civil Procedure and an Order of the United States District Court for the Central District of California (i) of the pendency of this action (the "Consolidated Action") as a class action on behalf of the persons and entities described above (the "Class"), except for certain persons and entities who are excluded from the Class by definition; and (ii) that three settlements ("Settlements") reached in this Consolidated Action have been proposed that will fully and finally settle all claims against and release all Defendants (i.e., a settlement with the Individual Defendants in the amount of $65,077,088.00; a settlement with the Underwriter Defendants in the amount of $15,000,000.00; and a settlement with KPMG LLP in the amount of $44,750,000.00). The total cash amount of the Settlements equals $124,827,088.00. A hearing will be held before the Honorable Dean D. Pregerson at the United States District Court for the Central District of California, 312 North Spring Street, Courtroom 3, Los Angeles, California 90012 at 10:00 A.M. on November 8, 2010, to determine: (1) whether this Consolidated Action should be finally certified, for settlement purposes only, as a class action under Rules 23(a) and (b) of the Federal Rules of Civil Procedure on behalf of the Class; (2) whether the proposed Settlements should be approved by the Court as fair, reasonable, and adequate; (3) whether the Plan of Allocation is fair, reasonable and adequate and therefore should be approved in connection with the Settlements; and (3) whether the application of Lead Counsel for attorneys' fees and Litigation Expenses should be approved.

IF YOU ARE A MEMBER OF THE CLASS, YOUR RIGHTS WILL BE AFFECTED BY THE SETTLEMENTS, AND YOU MAY BE ENTITLED TO SHARE IN THE SETTLEMENT FUND. If you have not yet received the (1) Notice Of Pendency Of Class Action And Proposed Settlements, Settlement Fairness Hearing, And Motion For Attorneys' Fees And Reimbursement Of Litigation Expenses ("Notice"); and (2) Proof Of Claim And Release ("Claim Form"), you may obtain copies of these documents by contacting: In re New Century Securities Litigation Settlement c/o Analytics, Inc. Claims Administrator, P.O. Box 2004, Chanhassen, MN 55317-2004, (866) 308-7615. Copies of the Notice and Claim Form may also be downloaded from: www.blbglaw.com or at www.newcenturysettlement.com. If you are a Class Member, in order to be eligible to share in the distribution of the Net Settlement Fund, you must submit a Claim Form no later than December 15, 2010, establishing that you are entitled to a recovery. You will be bound by any judgment entered in the Consolidated Action whether or not you make a Claim.

If you desire to be excluded from the Class, you must submit a request for exclusion to be received by October 18, 2010, in the manner and form explained in the Notice. All Class Members who do not request exclusion from the Class will be bound by any judgment entered in the Consolidated Action.

Any objection to the proposed Settlements, Plan of Allocation or application for attorneys' fees and payment of Litigation Expenses must be filed with the Court and delivered to be received by counsel for the parties no later than October 18, 2010, in the manner and form set forth in the Notice.

PLEASE DO NOT CONTACT THE COURT OR THE CLERK'S OFFICE REGARDING THIS NOTICE. Inquiries, other than requests for the Notice and Claim Form, may be made to Lead Counsel:

BERNSTEIN LITOWITZ BERGER

& GROSSMANN LLP

Salvatore J. Graziano

1285 Avenue of the Americas

New York, New York 10019

Telephone: (866) 648-2524

By Order of the Clerk of the Court United States District Court for the Central District of California

Web site: http://www.blbglaw.com/cases/index

http://www.newcenturysettlement.com

SOURCE Bernstein Litowitz Berger & Grossmann LLP