SECURITIES FRAUD
 

Shapiro Haber & Urmy Files Class Action on Behalf of Purchasers of Xerium Technologies, Inc.

The Complaint alleges that the Prospectus with respect to Xerium's IPO, filed with the SEC on or about May 11, 2005 on a Form S-1/A Registration Statement, and which became effective on or about May 16, 2005, contained untrue statements of material facts, omitted to state other facts necessary to make the statements made not misleading and was not prepared in accordance with the rules and regulations governing its preparation.  At the time of the IPO, Xerium was undergoing “Cost Reduction Programs” which were negatively impacting its business and forcing it to have customers seek out other producers.  The Prospectus purported to warn about the potential negative impact of these programs but failed to disclose that the Company’s business was then being negatively impacted by the Cost Reduction Programs and the loss of business associated therewith.  The Prospectus instead portrayed the Company as “well positioned” to “take advantage” of positive trends in the paper production industry and represented that the Cost Reduction Programs had “rationalized production among our facilities to better enable us to meet customer demands.”  Under applicable SEC rules and regulations governing the preparation of the Registration Statement and Prospectus, the Prospectus was required to disclose that the Company was experiencing a loss of customers as a result of the Cost Reduction Programs.  The Prospectus failed to contain any such disclosure.

Then, on November 14, 2005, Xerium issued a press release announcing its financial results for the third quarter of 2005, the period ending September 30, 2005.  The Company reported that the restructuring program had severely impacted its results causing the Company to experience declining net income. In response to this announcement the price of Xerium common stock dropped from $9.51 per share to $6.85 per share on extremely heavy trading volume.