Legal Threats Loom Over American Water Works–Essential Merger as Litigation Risks Mount

American Water Works (AWK) has disclosed a new risk, in the Litigation & Legal Liabilities category.

American Water Works faces heightened exposure to securities class actions, derivative suits, and litigation seeking to block its proposed merger with Essential, a common outcome once a merger pact is announced. Even meritless claims could impose significant legal expenses, consume management’s attention, and, if injunctions are granted, delay or ultimately prevent the merger’s completion.

The average AWK stock price target is $129.00, implying -1.80% downside potential.

To learn more about American Water Works’ risk factors, click here.