9th Circ. Reinstates SouthWest Investors' Fraud Claims

Law360, New York (June 7, 2013, 8:37 PM EDT) -- The Ninth Circuit on Friday revived some class action claims against SouthWest Water Co. by investors who claim the water utility operator had misrepresented its health through financial statements it eventually admitted were wrong.

A three-judge panel partly reversed a lower court's ruling dismissing the suit with prejudice, bringing back the investors' claims under sections 11 and 15 of the Securities Act of 1933. Shareholders bringing Section 11 claims must show the filing at issue contained an error that was significant enough to mislead them about...
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