LOS ANGELES, Jan. 13, 2009 (GLOBE NEWSWIRE) -- Glancy Binkow & Goldberg LLP -- representing shareholders of SouthWest Water Company -- announces 13 days remaining to move to be a lead plaintiff in the shareholder lawsuit, and the expansion of the Class Period to include all persons or entities who purchased or otherwise acquired the securities of SouthWest Water Company ("SouthWest Water" or the "Company") (Nasdaq:SWWC) between May 10, 2005 and November 9, 2008, inclusive (the "Class Period").
If you wish to receive a copy of the Complaint, or have any questions concerning your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150, Toll Free at (888) 773-9224, or e-mail to info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges SouthWest Water and certain of its executive officers with violations of federal securities laws. Specifically, the Complaint alleges that defendants' public statements were false and misleading or failed to disclose or indicate the following: (1) that in regard to certain acquired assets, the Company was improperly applying a rate of depreciation for financial reporting purposes that did not consider the length of time the assets were in service prior to being acquired; (2) that the Company was improperly capitalizing and depreciating costs associated with installing water and sewer taps in Texas and Mississippi but recognizing the related tap fee revenue when received, instead of expensing the costs as incurred and recognizing the related revenue in the period the tap was actually installed; (3) that, as a result of the above, depreciation expense related to assets acquired by acquisition since 2000 had been understated on the Company's consolidated financial statements, expenses related to the installation of water and sewer taps in Texas and Mississippi had been understated, and certain assets and related depreciation were overstated; (4) that as such, the Company misstated its financial results during the Class Period; (5) that the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles; (6) that the Company lacked adequate internal and financial controls; and (7) that as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On November 10, 2008, SouthWest Water shocked investors when it announced that the Company's audit committee had concluded that the consolidated 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 to correct a number of errors related to: (1) the establishment of the rate of depreciation of assets acquired by acquisition; and (2) the accounting for revenues and related costs associated with the installation of water and sewer taps. On this news, shares of SouthWest Water declined $2.97 per share, more than 36%, to close on November 10, 2008, at $5.25 per share, on unusually heavy volume.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting shareholder lawsuits, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than January 26, 2009, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, or Richard A. Maniskas, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.