SWWC Southwest Water (MM)

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