SouthWest Water Company owns and operates regulated water and wastewater systems in several states.

According to a press release dated November 26, 2008, the Complaint alleges that throughout the Class Period, Defendants knew or recklessly disregarded that their public statements were materially false and misleading.

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 February 12, 2009, a Motion for consolidation of related actions, appointment of lead Plaintiff and approval of lead Plaintiff's selection of co-lead Counsel was granted.

On October 15, 2009, a Consolidated Amended Class Action Complaint was filed by the Plaintiffs in this action against the Defendants.

On July 30, 2010, a Second Consolidated Amended Class Action Complaint for Violations of the Federal Securities Laws against Defendants was filed by the lead Plaintiffs.

The Court released an Order on August 19, 2010, granting a motion to dismiss one of the named Defendants with prejudice.

On June 30, 2011, the Court issued an order granting the Defendant's Motion to Dismiss the Plaintiff's Second Amended Complaint.