NEW YORK, Dec. 15, 2008 (GLOBE NEWSWIRE) -- Attorney Advertising. The law firm of Bull & Lifshitz, LLP is investigating possible illegal conduct as alleged in proposed class action lawsuits filed in the United States District Court for the Central District of California against SouthWest Water Company (Nasdaq:SWWC) ("SouthWest Water" or the "Company") and certain of SouthWest Water's officers and directors for violations of the Securities Exchange Act of 1934. The lawsuits are brought on behalf of all purchasers of common stock from May 10, 2005 through November 9, 2008 (the "Class Period").
According to the class action complaints, during the Class Period, SouthWest Water and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing materially false and misleading statements concerning the Company's business, operations, and prospects. Specifically, according to the class action complaints, 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.
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 Joshua M. Lifshitz, Esq., Bull & Lifshitz, LLP via telephone at (212) 213-6222, via fax at (212) 213-9405 or by email at counsel@nyclasslaw.com. Please visit the Bull & Lifshitz, LLP website (http://www.nyclasslaw.com) for more information about the firm.
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