Pittsburgh Law Office of Alfred G. Yates Jr., PC Commences a Shareholder Class Action Suit Against Basin Water, Inc. (BWTR) and
January 05 2008 - 8:59PM
Business Wire
Notice is hereby given by the Law Office of Alfred G. Yates Jr., PC
that it has filed a class action in the United States District
Court for the Central District of California on behalf of
purchasers of Basin Water, Inc. ("Basin") (NASDAQ:BWTR) common
stock during the period between May 14, 2007 and November 13, 2007
(the "Class Period"). If you wish to serve as lead plaintiff, you
must move the Court no later than February 25, 2008. If you wish to
discuss this action or have any questions concerning this notice or
your rights or interests, please contact plaintiff's counsel,
Alfred G. Yates, Jr. at 1-800-391-5164 or via e-mail at
yateslaw@aol.com. 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. The
complaint charges Basin and certain of its officers and directors
with violations of the Securities Exchange Act of 1934. Basin
designs, builds and implements systems for the treatment of
contaminated groundwater. The complaint alleges that during the
Class Period, defendants issued materially false and misleading
statements regarding the Company's business and financial results.
As a result of defendants' false statements, Basin stock traded at
artificially inflated prices during the Class Period, reaching a
high of $13.06 per share on November 8, 2007. On November 14, 2007,
before the market opened, the Company reported its financial
results for the quarter ended September 30, 2007, and announced
that during the third quarter, the Company recorded a $4.7 million
charge to cost of revenues to reserve for future projected losses.
The reserve was due primarily to poorly priced contracts,
increasing waste disposal and salt purchase costs and the inability
to contractually pass increased costs on to the Company's clients.
This charge to cost of revenues was in addition to the reserve
previously recorded in the fourth quarter of 2006. On this news,
Basin's stock declined $2.29 per share to close at $8.01 per share,
a one-day decline of 22% on volume of 1.4 million shares. According
to the complaint, the true facts, which were known by the
defendants but concealed from the investing public during the Class
Period, were as follows: (a) the Company failed to properly account
for its reserves for its legacy system contracts related to its
system sales and water service agreement contracts; (b) the
Company's unprofitable legacy business would continue to weigh on
the Company's results for some period of time as the Company was
having difficultly reworking its unfavorable legacy contracts; (c)
defendants' Class Period statements that by the end of the second
quarter of 2007 the Company had largely completed its internal
operational transition of its business practices and processes and
had resolved the bulk of the issues concerning its legacy contracts
were patently false; and (d) the Company lacked requisite internal
controls to ensure that Company was properly accounting for its
reserves for its legacy contracts, and, as a result, the Company's
projections and reported results issued during the Class Period
were based upon defective assumptions and/or manipulated facts.
Plaintiff seeks to recover damages on behalf of all purchasers of
Basin common stock during the Class Period (the "Class"). The Yates
firm is also investigating actions on behalf of shareholders for
the following companies: COMPANY � CLASS PERIOD � Comcast Corp.
(Nasdaq: CMCSA) February 1, 2007 through December 4, 2007 � Ulta
Salon, Cosmetics & Fragrances, Inc. (Nasdaq: ULTA) October 25,
2007 through December 10, 2007 If you purchased securities of any
of the above companies during their respective Class Periods and
wish to discuss this action or have any questions, please contact
Alfred G. Yates Jr., Esquire at 1-800-391-5164, toll free, or at
yateslaw@aol.com by e-mail.
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