LOS ANGELES, May 31, 2006 (PRIMEZONE) -- Yourman Alexander & Parekh LLP, a law firm with extensive experience in prosecuting claims for securities and consumer fraud, announces that a lawsuit seeking class action status has been filed on behalf of shareholders who purchased or otherwise acquired the securities of Newpark Resources, Inc. ("Newpark" or the "Company") (NYSE:NR) during the period February 28, 2005 through April 17, 2006, inclusive (the "Class Period"). The matter is pending in the United States District Court for the Eastern District of Louisiana.
The complaint alleges in part that defendants violated federal securities laws by issuing false and misleading statements concerning the financial condition of Newpark. The complaint also alleges that while defendants were issuing these statements during the Class Period: (i) defendants were improperly processing and paying invoices; (ii) the Company had inadequate internal controls and systems; and (iii) the Company's financial statements were not being prepared in accordance with Generally Accepted Accounting Principles ("GAAP"). As a result of the foregoing, the complaint alleges that Newpark securities were artificially inflated during the relevant time period and that when the true financial condition of the Company was revealed on April 17, 2006, Newpark shares plummeted by $1.28, to close at $6.14 per share, a 17% drop from the previous trading day's closing price.
Since a class has not yet been certified, you are not represented by counsel in this matter. If you purchased or acquired Newpark securities from February 28, 2005 through April 17, 2006, inclusive, and suffered a loss, the deadline to move for appointment as Lead Plaintiff is June 20, 2006. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The securities laws require the Court to consider the class member(s) with the largest financial interest, i.e. the largest financial loss, as presumptively the most adequate Lead Plaintiff(s). In order to serve as a Lead Plaintiff, you must meet certain legal requirements. While your ability to share in any recovery is not affected by your decision of whether or not to seek appointment as a Lead Plaintiff, Lead Plaintiffs are responsible for making important decisions which could affect the overall recovery for class members, including decisions concerning settlement. If you are only concerned with your ability to participate as a class member, you do not need to take any action at this time.
If you: (i) wish to discuss this action, have information concerning this case, or acquired shares through your Newpark retirement account; (ii) have questions concerning this Notice or your rights or interests with respect to this litigation; or (iii) have any other potential matters that you would care to discuss, please contact Vahn Alexander of , 3601 Aviation Blvd., Suite 3000, Manhattan Beach, California 90266 by telephone, toll-free at (800) 725-6020, or by email to valexander@yaplaw.com. There will be no obligation or cost to you concerning your inquiry. For more information please visit www.yaplaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca