RADNOR, Pa., Jan. 20, 2024 /PRNewswire/ — The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been against ChargePoint Holdings, Inc. (“ChargePoint”) (NYSE: CHPT). The action charges ChargePoint with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company’s business, operations, and prospects. As a result of ChargePoint’s materially misleading statements and omissions to the public, ChargePoint’s investors have suffered significant losses.
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LEAD PLAINTIFF DEADLINE: JANUARY 29, 2024
CLASS PERIOD: JUNE 1, 2023 THROUGH NOVEMBER 16, 2023
CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS:
Jonathan Naji, Esq. at (484) 270-1453 or via email at [email protected]
Kessler Topaz is one of the world’s foremost advocates in protecting the public against corporate fraud and other wrongdoing. Our securities fraud litigators are regularly recognized as leaders in the field as well as the firm itself which is continuously recognized with awards for the successful results we’ve achieved. We are proud to have recovered billions of dollars for our clients and the classes of shareholders we represent.
DEFENDANTS’ ALLEGED MISCONDUCT
Throughout the Class Period (June 1, 2023 through November 18, 2023), Defendants made false and/or misleading statements and/or failed to disclose that: (1) ChargePoint was experiencing higher component costs and supply overruns for first generation DC charging products; (2) as a result, ChargePoint was likely to incur impairment charges; (3) as a result of the foregoing, ChargePoint’s profitability would be adversely impacted; and (4) as a result of the foregoing, Defendants’ positive statements about ChargePoint’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
The truth began to emerge after the market closed on September 6, 2023, when ChargePoint announced its second quarter 2023 financial results and revealed a “$28.0 million, or 19 percentage point, inventory impairment charge.” As a result, ChargePoint reported a second quarter GAAP gross margin of 1%, down from 17% in the prior year’s same quarter. On this news, the price of ChargePoint common stock declined $0.77 per share, or nearly 11%, from a close of $7.06 per share on September 6, 2023, to close at $6.29 per share on September 7, 2023
Then, on November 16, 2023, after the market closed, ChargePoint announced its preliminary third quarter 2023 financial results and revealed a $42 million “non-cash inventory impairment charge.” ChargePoint attributed the impairment charge to “product transitions” to “better align inventory with current demand,” resulting in an expected third quarter “GAAP gross margin of negative 23% to negative 21%.” Furthermore, ChargePoint reported preliminary revenue results had fallen to levels below expected. Finally, ChargePoint’s CEO and CFO were both replaced, effective immediately. On this news, the price of ChargePoint common stock declined $1.11 per share, or more than 35%, from a close of $7.06 per share on November 16, 2023, to close at $3.13 per share on November 17, 2023.
WHAT CAN I DO?
ChargePoint investors may, no later than January 29, 2024, move the Court to serve as lead plaintiff for the class, through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages ChargePoint investors who have suffered significant losses to contact the firm directly to acquire more information. The class action complaint against ChargePoint, Khan v. ChargePoint Holdings, Inc., et al., Case No. 23-cv-06172, is filed in the United States District Court for the Northern District of California.
CLICK HERE TO SIGN UP FOR THE CASE
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
Jonathan Naji, Esq.
280 King of Prussia Road
Radnor, PA 19087
(484) 270-1453
[email protected]
SOURCE Kessler Topaz Meltzer & Check, LLP
