Class-action lawsuit filed against Gov. Ivey, lawmakers over water utility takeover

A class-action lawsuit has been filed against Governor Kay Ivey and numerous state and local leaders, alleging an unconstitutional and racially motivated state takeover of the Birmingham Water Works (BWWB), now operating as Central Alabama Water (CAW). Former board members William Muhammad and Brenda Lewis, along with ratepayers, claim the state illegally seized control of the utility, built and funded by Birmingham residents over 75 years. The lawsuit targets legislative act SB330, arguing it constitutes an unconstitutional taking of assets without compensation, strips authority from a predominantly Black city, and violates principles of local self-determination.

The plaintiffs seek over $1.6 billion in compensation and an injunction to restore the original board composition. They argue the takeover was unnecessary, citing a lack of systemic failure and comparing the state's actions to those of “Communist countries” regarding asset confiscation. The lawsuit also highlights financial issues at Central Alabama Water, including a recent downgrade by S&P Global and an audit revealing mismanagement, lack of policies, and potential employee theft.

The Governor’s office has not yet commented on the suit. The case is assigned to U.S. District Judge Anna M. Manasco.

(Source：Wvtm13)