Shareholder Class Action Filed Against Basin Water, Inc. by the Law Firm of Schiffrin Barroway Topaz & Kessler, LLP
January 02 2008 - 7:29PM
PR Newswire (US)
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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