Law360 Highlights Robbins Umeda LLP’s* Shareholder Suit Against SouthWest Water Co.
On March 22, 2010 Law360 reported that SouthWest Water Company shareholder Frank Leskovitz, represented by Robbins Umeda LLP and Rosenthal Monhait & Goddess PA, filed a putative class action complaint in Delaware Chancery Court challenging the company’s $275 million merger with SW Merger Acquisition Corp. According to the article, the suit alleges that the company arranged an undervalued merger in order to evade a pending derivative action over accounting irregularities that caused SouthWest’s stock price to plummet in 2008. In addition, the shareholder suit claims the deal was rigged to benefit the company’s directors and officers, and that it discourages competing bids and ignores rebounding stock values as well as SouthWest’s strong prospects. Moreover, according to the complaint, once the deal goes through shareholders in the derivative action will likely lose standing to pursue the company’s claims against the board members. Leskovitz v. SouthWest Water Co. et al., No. 5347 (Del. Ch. Ct.)
* The firm name changed from Robbins Umeda LLP to Robbins Arroyo LLP on January 1, 2013.