Cohen Milstein Sellers & Toll PLLC Files Class Action Lawsuit Against SouthWest Water Co.
December 31 2008 - 9:32AM
Business Wire
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
Southwest Water (NASDAQ:SWWC)
Historical Stock Chart
From Sep 2024 to Oct 2024
Southwest Water (NASDAQ:SWWC)
Historical Stock Chart
From Oct 2023 to Oct 2024