BWTR Basin Water (MM)

RADNOR, Pa., Jan. 2 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP: Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Central District of California on behalf of all purchasers of securities of Basin Water, Inc. (NASDAQ:BWTR) ("Basin" or the "Company") from May 14, 2007 through November 13, 2007, inclusive (the "Class Period"). If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at . The Complaint charges Basin and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Basin Water is a provider of long-term process solutions for a range of clients, which include designing, building and implementing systems for the treatment of contaminated groundwater as well as waste reduction and resource recovery. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company had not adequately accounted for reserves in connection with its legacy system contracts, due to inadequate contracts which did not allow the Company to pass on rising costs in a timely manner; (2) that operating losses from such legacy system contracts would continue to negatively impact the Company's financial results; (3) that the Company's transition efforts were not proceeding according to expectations and were not as complete as the Company had represented to investors; (4) that the Company's statements about projected profits and losses from contracts, and the completeness of the Company's review and writeoffs of such projected losses in prior reporting periods, were false; (5) that the Company's financial statements 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 foregoing, the Company's statements about its financial well-being and future business prospects were lacking in any reasonable basis when made. On November 14, 2007, the Company shocked investors when it reported its third quarter 2007 results, which included a surprise $4.7 million charge to the Company's cost of revenues to reserve for future projected losses. The Company stated that the reserve "was due primarily to poorly priced contracts," and that many of the Company's older contracts would continue to operate at a loss "for some period of time." On this news, the Company's shares declined $2.29 share, or 22.23 percent, to close on November 14, 2007 at $8.01 per share, on unusually heavy trading volume. Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin Barroway Topaz & Kessler or to sign up to participate in this action online, please visit http://www.sbtklaw.com/ If you are a member of the class described above, you may, not later than February 25, 2008, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. CONTACT: Schiffrin Barroway Topaz & Kessler, LLP Darren J. Check, Esq. Richard A. Maniskas, Esq. 280 King of Prussia Road Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706 Or by e-mail at DATASOURCE: Schiffrin Barroway Topaz & Kessler, LLP CONTACT: Darren J. Check, Esq. or Richard A. Maniskas, Esq., +1-888-299-7706 (toll free), +1-610-667-7706, , both of Schiffrin Barroway Topaz & Kessler, LLP Web site: http://www.sbtklaw.com/

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