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newsApr 2, 20261:31

Central Alabama Water Sued for Mismanagement

About this episode

Central Alabama Water faces a class-action lawsuit, accused of mismanagement threatening drinking water for over 770,000 residents. The suit, filed by Jim Hicks, seeks an independent receiver to take control, citing cost-cutting measures that halted repairs, cut jobs, and slashed upgrades. The utilitys credit rating has been downgraded, impacting ratepayers. The suit also addresses the removal of fluoride from the water, breaking state law. The courts decision could significantly impact the utilitys operations and water safety.

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Central Alabama Water Sued for Mismanagement

Birmingham News Today | 2 Min News | The Daily News Now!

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Full transcript

Birmingham News Today | 2 Min News | The Daily News Now!Central Alabama Water Sued for Mismanagement. Machine-transcribed; use the interactive transcript above to jump the player to any line.

A customer just dropped a class action lawsuit against Central Alabama Water, aiming to boot the board and CEO for wild mismanagement that's putting. Drinking water at risk for over 770,000 folks across five counties. Jim Hicks filed the Injeficent County Circuit Court, pushing hard for an independent receiver to grab control right now. This mess started when a fresh board took over in May 2025 and brought in CEO Jeffrey F. Thompson. They've gone on a cost-cutting rampage, halting an $85 million repair on the century-old Lake Purdy Dam, mid-build, axing 200. Eleven jobs, including the whole water testing lab, scrapping major upgrades and slapping fees on bill payments by closing cash offices, customers are fired up, and it's hitting while it's hard. S&P just downgraded the utilities credit rating over the chaos and crumbling infrastructure, stacking up borrowing costs that get passed right to. Rape payers, since it's all customer-funded.

Meanwhile, the board snuck out fluoride from the water, breaking state law, Birmingham sued and won an order to bring it back. The suits calling for an emergency hearing ASAP plus a judge's order to freeze more budget slashes, protect water testing, and restart fluoridation, immediately. With water safety on the line, this court's next move could reshape how the utility runs and keeps the flow steady for everyone downstream. I'm Corey with The Story. That's your Birmingham News Today update, AI-powered and always on.

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