Judge dismisses federal lawsuit claiming state illegally seized control of Central Alabama Water

BIRMINGHAM, Ala. (WBRC) – A federal judge dismissed a lawsuit filed by two former Birmingham Water Works Board (BWWB) members claiming the state illegally seized control of Alabama’s largest water utility.

The lawsuit filed in February 2026 claimed state laws that changed the BWWB/Central Alabama Water (CAW) governance were unconstitutional because the utility, according to plaintiffs, is a private company and not a state agency subject to legislative oversight.

“Central Alabama Water is pleased that U.S. District Judge Anna M. Manasco dismissed with prejudice Muhammad, et al. v. Waggoner, et al. at today’s hearing, thus ending this case,:” said Shan Paden, CAW’s general counsel.

Manasco issued the ruling Thursday, Aug. 20, and is also overseeing a similar lawsuit filed by Birmingham Mayor Randall Woodfin that asks the court to block implementation of the 2025 state law that dissolved the former BWWB board and converted the utility to Central Alabama Water with a newly-appointed board…

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