SouthWest Water Investors Ask 9th Circ. To Revive Fraud Suit

Law360, Los Angeles (April 10, 2013, 9:15 PM EDT) -- Investors who sued SouthWest Water Co. after it admitted financial statements were false urged the Ninth Circuit on Wednesday to revive the class action, saying they had sufficiently alleged the company acted with “deliberate recklessness” in presenting a distorted picture of its financial condition.

The investors said a trial judge who dismissed the case in June erred in finding they had not pled their claims under two sections of the Securities Act of 1933 with enough particularity. The suit alleged shareholders suffered “staggering” losses after SouthWest...
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