MILWAUKEE, May 26, 2006 (PRIMEZONE) -- Ademi & O'Reilly, LLP announced it filed a class action lawsuit in the United States District Court for the Eastern District of Louisiana on behalf of purchasers of Newpark Resources, Inc. ("Newpark" or the "Company") (NYSE:NR) common stock during the period between February 28, 2005 and April 17, 2006.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please us at gademi@ademilaw.com or toll-free at 866/264-3995. You can view a copy of the complaint (http://www.ademilaw.com/cases/Newpark.pdf), or join this class action online at http://www.ademilaw.com. The deadline is June 20, 2006. You may move the Court to serve as lead plaintiff through counsel of your choice, or you may choose to do nothing and remain an absent class member.
The complaint charges Newpark and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that, during the Class Period, defendants caused Newpark's shares to trade at artificially inflated levels by issuing a series of materially false and misleading statements regarding the Company's financial statements, business and prospects. As alleged in the complaint, the true facts, which were known by each of the defendants but concealed from the investing public during the Class Period, were as follows: (a) that Newpark was improperly processing and paying invoices inconsistent with and in violation of Generally Accepted Accounting Principles ("GAAP"); (b) that Newpark had inadequate and deficient internal controls and systems; (c) that, as a result of (a)-(b) above, Newpark's financial statements were grossly inflated and materially misleading; and (d) that, as a result of (a)-(c) above, Newpark had no reasonable basis upon which to issue financial guidance for fiscal 2005.
The complaint further alleges that on March 22, 2006, without warning, Newpark reported that defendant James P. Cole had been replaced as Chief Executive Officer ("CEO") by Paul L. Howes in order to allow Cole to "devote his full energies to the development of the new water treatment technology as Chairman and CEO of Newpark Environmental Water Solutions, a wholly-owned subsidiary of Newpark." Then, on April 17, 2006, Newpark shocked the investing public when it reported that it had commenced an internal investigation regarding "potential irregularities involving the processing and payment of invoices by Soloco Texas, LP, one of the Company's smaller subsidiaries, and other possible violations." Moreover, although not specifically mentioned, defendant Cole had been placed on administrative leave.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.