Milberg LLP Announces Its Investigation on Behalf of Certain Investors of SouthWest Water Company -- SWWC
January 14 2009 - 4:04PM
Marketwired
The law firm of Milberg LLP is investigating alleged financial
improprieties as pled in class action lawsuits filed in the United
States District Court for the Central District of California on
behalf of all investors who purchased SouthWest Water Company
("SouthWest Water" or the "Company") (NASDAQ: SWWC) common stock
between May 10, 2005, and November 7, 2008, inclusive (the "Class
Period").
The lawsuits charge SouthWest Water and certain of its officers
and directors with violations of the Securities Exchange Act of
1934. 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.
According to the complaints, defendants failed to disclose or
indicate the following: (1) that the Company had improperly
accounted for the rate of depreciation of assets acquired by
acquisition; (2) that the Company had improperly accounted for
revenues and related costs associated with the installation of
water and sewer taps; (3) that the Company's financial statements
were not prepared in accordance with Generally Accepted Accounting
Principles ("GAAP"); (4) that the Company lacked adequate internal
and financial controls; and (5) that, as a result of the foregoing,
the Company's financial statements were materially false and
misleading at all relevant times.
On November 10, 2008, the Company announced that the Company's
audit committee concluded that the 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 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. Upon the release of this news, the Company's shares fell
$2.97 per share, or more than 36%, to close on November 10, 2008 at
$5.25 per share, on unusually heavy trading volume.
If you purchased securities of SouthWest from May 10, 2005,
through November 7, 2008, you may move the court no later than
January 26, 2009, and request that the Court appoint you as lead
plaintiff. A lead plaintiff is a representative party acting on
behalf of other class members in directing the litigation. To be
appointed lead plaintiff, the Court must decide that your claim is
typical of the claims of other class members, and that you will
adequately represent the class. Your share in any recovery will not
be enhanced or diminished by the decision whether or not to serve
as a lead plaintiff. You may retain Milberg LLP, or other
attorneys, to serve as your counsel in this action.
Milberg LLP has been representing individual and institutional
investors for nearly 40 years and serves as lead counsel in federal
and state courts throughout the United States. Please visit the
Milberg website (http://www.milberg.com) for more information about
the firm. If you wish to discuss this matter with us, or have any
questions concerning your rights and interests with regard to this
matter, please contact the following attorneys:
Peter Safirstein Andrei Rado Milberg LLP One Pennsylvania Plaza,
49th Fl. New York, NY 10119-0165 Phone number: (800) 320-5081
Email: contactus@milberg.com Attorney Advertising. Prior Results Do
Not Guarantee A Similar Outcome.
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