June 15, 2006- LAWFUEL – Press Release Service -Goldman Scarlato & Karon, P.C., a law firm with offices in Pennsylvania and Ohio, announces that a lawsuit has been filed in the United States District Court for the District of Massachusetts, on behalf of persons who purchased the common stock of Xerium Technologies Inc. (“Xerium” or the “Company”) (NYSE:XRM) pursuant and/or traceable to the Company’s initial public offerings on or about May 16, 2005 and November 15, 2005, inclusive, (the “Class Period”). The lawsuit was filed against Xerium and certain officers and directors (“Defendants”).
If you are a member of this class and wish to view a copy of a complaint and join this class action, please e-mail us at [email protected] and request a copy of the complaint and a plaintiff certification. If you are a member of the Class, you may move the Court no later than August 7, 2006 to serve as a lead plaintiff for the Class. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. However, if you choose to remain an absent class member, unless and until a class is certified, you are not represented by counsel.
The complaint alleges that Defendants violated the Securities Act of 1933. Specifically, the complaint alleges that the Prospectus and Registration Statement (the “Prospectus”) issued in connection with the Company’s Initial Public offering (“IPO”) on or about May 16, 2005, contained untrue statements of material facts and omitted to state other facts necessary to make the statements made not misleading as was not prepared in accordance with the rules and regulations governing its preparation. More specifically, the complaint alleges that at the time of the IPO, Xerium was dealing with a “Cost Reduction Program” which was dramatically impacting its business and forcing it to shift its customers to competitors to meet their needs. While the Company purported to warn about the potential impact of these programs, it failed to disclose that its business was then being negatively impacted by the “Cost Reduction Programs” and the loss of associated business.
On November 14, 2005, Xerium issued a press release detailing its financial results for the third-quarter of 2005. The Company reported that the “Cost Reduction Programs” had dramatically impacted its business, causing the Company to experience a large decline in net income. In reaction to this news, Xerium shares fell from $9.51 per share to $6.85 per share, a one-day decline of 27.9%.
If you bought Xerium securities pursuant to its IPO and between May 16, 2005 and November 15, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (888) 753-2796 to speak with an advisor.