Southwest Water (NASDAQ:SWWC)
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The law firm Cohen Milstein Sellers & Toll PLLC (“Cohen Milstein”) has
filed a lawsuit in the United States District Court for the Central
District of California on behalf of its client and on behalf of other
similarly situated purchasers of SouthWest Water Company (“SouthWest
Water” or the “Company”) (NASDAQ:SWWC) common stock during the period
between May 10, 2005 and November 7, 2008, inclusive (the “Class
Period”).
The complaint charges SouthWest Water and certain of its officers and
directors (collectively “Defendants”) with violations of the Securities
Exchange Act of 1934 (the “Exchange Act”). SouthWest Water provides
operations, maintenance and management services, including water
production, treatment and distribution, wastewater collection and
treatment, customer service, and utility infrastructure construction
management. The Company owns regulated public utilities and also serves
cities, utility districts and private companies under contract. The
complaint alleges that, during the Class Period, Defendants issued
numerous materially false and misleading statements which caused
SouthWest Water’s securities to trade at artificially inflated prices.
More specifically, the complaint alleges that Defendants’ public
statements were false and misleading and/or failed to disclose or
indicate that: (1) the Company had improperly accounted for the rate of
depreciation of assets acquired by its acquisitions; (2) the Company had
improperly accounted for revenues and related costs associated with the
installation of water and sewer taps; (3) the Company’s financial
statements were not prepared in accordance with Generally Accepted
Accounting Principles (“GAAP”); (4) the Company lacked adequate internal
and financial controls; and (5) as a result of the foregoing, the
Company’s financial statements were materially false and misleading at
all relevant times.
According to the complaint, on November 10, 2008, the Company shocked
investors when it announced that its audit committee concluded that the
Company’s financial statements for the years ended December 31, 2005,
2006 and 2007, and for each of the quarters therein, as well as for the
quarters ended March 31, 2008 and June 30, 2008, should no longer be
relied upon and would be restated. The complaint alleges that the errors
that led to the restatement related to the establishment of the rate of
depreciation of assets acquired by the Company through acquisitions, and
in accounting for revenues and related costs associated with the
installation of water and sewer taps. Following this news, the Company's
shares fell $2.97 per share, or more than 36 percent, to close on
November 10, 2008 at $5.25 per share, on unusually heavy trading volume.
If you are a member of the class, you may, no later than January 26,
2009, request that the Court appoint you as Lead Plaintiff of 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 remain an
absent class member.
Cohen Milstein Sellers & Toll PLLC has significant experience in
prosecuting investor class actions and actions involving securities
fraud. The firm has offices in Washington, D.C., New York, Philadelphia,
Chicago, and London, and is active in major litigation pending in
federal and state courts throughout the nation, including actions within
this District. You may visit the firm’s website at www.cohenmilstein.com.
The firm’s reputation for excellence has been recognized on repeated
occasions by courts which have appointed the firm to lead positions in
complex multi-district or consolidated litigation. Cohen Milstein
Sellers & Toll PLLC has taken a lead role in numerous important cases on
behalf of defrauded investors, and has been responsible for a number of
outstanding recoveries which, in the aggregate, total in the billions of
dollars.
If you have any questions about this notice or the action, or with
regard to your rights, please contact either of the following:
Steven J. Toll, Esq.
Tyler Gaffney
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
West Tower, Suite 500
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: stoll@cmht.com or tgaffney@cmht.com