Case Summary

ChargePoint

NYSE: CHPT

Case Details

  • Khan v. ChargePoint Holdings, Inc. et al.
  • Class Period:June 1, 2023 - November 16, 2023
  • Date Filed:November 29, 2023
  • Jurisdiction:U.S. District Court, Northern District of California
  • Docket Number: 5:23-cv-06172
  • Lead Plaintiff Deadline: January 29, 2024
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Overview

A class action lawsuit has been filed against ChargePoint Holdings, Inc., (“ChargePoint”, “CHPT” or the “Company”) (NYSE: CHPT) and certain of the Company’s top executive officers alleging that they violated the federal securities laws.  The lawsuit seeks to represent all persons and entities who purchased or otherwise acquired ChargePoint securities between June 1, 2023, and November 16, 2023, inclusive (the “Class Period”).

ChargePoint provides networked solutions for charging electric vehicles, including the ChargePoint cloud subscription platform, and charging hardware. ChargePoint claims its goods and services are designed for an array of charging scenarios from home to workplace, parking, hospitality, retail, and transport fleets of all types.

The lawsuit alleges that alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) the Company was experiencing higher component costs and supply overruns for first generation DC charging products; (2) that, as a result, the Company was likely to incur impairment charges; (3) that, as a result of the foregoing, the Company’s profitability would be adversely impacted; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On September 6, 2023, after the market closed, ChargePoint reported its second quarter fiscal year 2024 financial results, including an “$28.0 million, or 19 percentage point, inventory impairment charge.” The Company stated the “inventory impairment charge was taken to address legacy supply chain-related costs and supply overruns on a particular DC product.” As a result, the Company reported a second quarter GAAP gross margin of 1%, down from 17% in the prior year’s same quarter. On this news, the Company’s share price fell $0.77, or 11%, to close at $6.29 per share on September 7, 2023, on unusually heavy trading volume.

Then, on November 16, 2023, after the market closed, ChargePoint released preliminary financial results for the third quarter of fiscal year 2024, which would include an “additional non-cash inventory impairment charge” in the amount of $42 million “related to product transitions and to better align inventory with current demand.” As a result, the Company expected to report “GAAP gross margin of negative 23% to negative 21%.” The Company also reported revenue had fallen to “$108 million to $113 million, as compared to $150 to $165 million as previously expected.” Moreover, ChargePoint’s Chief Executive Officer and Chief Financial Officer were both replaced, effective immediately. On this news, the Company’s share price fell $1.11, or 35%, to close at $2.02 per-share on November 17, 2023, on unusually heavy trading volume. 

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If you purchased or otherwise acquired ChargePoint securities between June 1, 2023, and November 16, 2023, inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the ChargePoint lawsuit is January 29, 2024.

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