NEW YORK, May 30, 2006 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) ("Pomerantz") reminds investors of Newpark Resources ("Newpark" or the "Company")(NYSE:NR) that June 20, 2006 is the deadline for investors to ask the court to appoint you as lead plaintiff for the Class. Pomerantz filed a class action lawsuit against the Company and certain of its officers on behalf of purchasers of Newpark securities during the period from February 28, 2005 to April 13, 2006, both dates inclusive (the "Class Period"). The complaint alleges violations of Section 10(b) and Section 20(a) of the Securities Exchange Act, and Rule 10b-5 promulgated thereunder.
Newpark is headquartered in Metairie, Louisiana. The Company provides fluids management, environmental, and oilfield services to the oil and gas exploration and production industries. The complaint alleges that unbeknownst to investors, defendants' internal controls and accounting practices during the Class Period were flawed and deficient. As a result of these deficiencies, the Company was forced to announce on April 17, 2006, the commencement of an internal investigation by its Audit Committee into accounting irregularities and other possible violations.
The irregularities involve "the processing and payment of invoice by Soloco Texas, LP," a Company subsidiary. Furthermore, the Company announced that it "has not yet been determined whether all or a portion of these payments is recoverable." As a result of the internal investigation, the Company placed the Chairman and CEO of Newpark Environmental Water Services, LLC, and an officer of Soloco Texas, LP on administrative leave. In response to these revelations, on April 17, 2006, Newpark's common stock fell $1.28 per share, losing over 17% of its value in one day on extremely high volume of close to 5 million shares traded, to close at $6.14 per share.
Lead plaintiffs must meet certain legal requirements. Shareholders outside the United States may also join the action, regardless of where they live or which exchange was used to purchase the securities. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Teresa L. Webb (tlwebb@pomlaw.com) or Carolyn S. Moskowitz (csmoskowitz@pomlaw.com) of the Pomerantz Firm at (888) 476-6529 (or (888) 4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. For more information about the Firm, visit our web site at www.pomlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca