Monterey Water System Dispute: California American Water Files Motion To Dismiss Condemnation
Portfolio Pulse from Benzinga Newsdesk
California American Water, a subsidiary of American Water Works Company Inc. (AWK), has filed a motion to dismiss a condemnation lawsuit regarding the Monterey Peninsula water system. The company argues that the District lacks legal standing and technical expertise to provide retail water service in the area, and that the lawsuit will result in wasteful spending on legal fees.

February 27, 2024 | 7:33 am
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California American Water's motion to dismiss the condemnation lawsuit could protect AWK from potential operational and financial disruptions in the Monterey Peninsula area.
The motion to dismiss the lawsuit, if successful, would allow California American Water to continue its operations without the threat of losing control over the Monterey Peninsula water system. This would prevent potential financial and operational disruptions, maintaining the company's revenue stream from this area and possibly averting negative impacts on AWK's stock price in the short term.
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