A federal judge rejected requests to toss out a shareholder lawsuit accusing former New Century Financial Corp. executives and underwriters of violating securities laws by making misstatements about the Irvine, Calif., company's financial situation.

Judge Dean Pregerson of the U.S. District Court for the Central District of California in Los Angeles denied the requests last week by Robert Cole, New Century's former chairman and chief executive; Brad Morrice, its former president; eight investment banks, including Bear Stearns Cos. and Deutsche Bank AG; and KPMG LLP, New Century's auditor.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.