Judge Says SouthWest Fraud Suit Doesn't Hold Water

Law360, New York (July 1, 2011, 7:06 PM EDT) -- SouthWest Water Co. won dismissal Thursday of a class action alleging an adjustment it made to its financial statements caused “staggering” shareholder losses, with a California judge finding that the plaintiffs did not meet a high enough standard of particularity.

U.S. District Judge Jacqueline H. Nguyen dismissed the claims with prejudice under two sections of the Securities Act of 1933, finding in both cases that the plaintiffs did not meet heightened pleading standards required to prevail in a securities suit. The ruling brings to an end...
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