| COMPANY |
ChargePoint Holdings, Inc. |
| COURT |
United States District Court for the Northern District of California |
| CASE NUMBER |
23-cv-06172 |
| JUDGE |
The Hon. Patrick Casey Pitts |
| CLASS PERIOD |
December 7, 2021 through November 16, 2023 |
| SECURITY TYPE |
Securities |
ChargePoint investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than January 29, 2024 move the Court to serve as lead plaintiff of the class, if you so choose.
A class action lawsuit has been filed on behalf of those who purchased or acquired ChargePoint Holdings, Inc. (“ChargePoint”) (NYSE: CHPT) securities between December 7, 2021 and November 16, 2023, both dates inclusive (the “Class Period”).
Case Background:
ChargePoint provides networked solutions for charging electric vehicles, including the ChargePoint cloud subscription platform and charging hardware.
On September 6, 2023, after the market closed, ChargePoint announced its second quarter 2023 financial results and revealed a “$28.0 million, or 19 percentage point, inventory impairment charge.” ChargePoint attributed the inventory impairment charge to “legacy supply chain-related costs and supply overruns on a particular DC product.” 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 “$108 million to $113 million, as compared to $150 to $165 million as previously 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.
The complaints allege that, during 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 misrepresented 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, the company was likely to incur impairment charges; (3) as a result of the foregoing, the company’s profitability would be adversely impacted; and (4) as a result, Defendants’ statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.