Charter Communications, Inc. (NASDAQ: CHTR) Securities Fraud Class Action

LEAD PLAINTIFF DEADLINE IS OCTOBER 14, 2025.

If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.

Case Background:
A class action lawsuit was filed on behalf of those who purchased or otherwise acquired Charter Communications, Inc. (“Charter”) (NASDAQ: CHTR) securities, including purchasers of call options or sellers of put options, between July 26, 2024, and July 24, 2025, inclusive (the “Class Period”).

Charter is a leading broadband, or high-speed Internet, connectivity company and cable operator. Charter operates in 41 states with services available to more than 57 million homes and businesses.  Charter’s core business is providing residential Internet services. Historically, approximately 90% of Charter’s annual revenues have been generated from monthly subscription fees charged to more than 30 million residential Internet customers.  Leading into the Class Period, however, Charter was experiencing declines in Internet customers.  As part of a “transformative” plan to expand Charter’s broadband Internet footprint and stem Internet customer losses, Charter participated in the FCC’s Affordable Connectivity Program ("ACP"). Under the ACP, the FCC provided funding to Charter and similar providers, in exchange for subsidizing high-speed Internet plans for low-income households.

The ACP ended shortly before the beginning of the Class Period. By this time, millions of Charter’s new and existing residential Internet customers were enrolled in the ACP. Nonetheless, Charter repeatedly assured investors throughout the Class Period that Charter was executing a plan to minimize and move beyond risks the end of the ACP had on customer declines and earnings. Further, Charter continuously reported that the strategy for certain customers post-ACP was part of a larger execution plan that would continue the company’s growth in earnings, and particularly EBITDA.

The Class Period begins on July 26, 2024, when Charter issued a press release announcing its second quarter 2024 financial results. Specifically, Charter reported second quarter Adjusted EBITDA of $5.7 billion, which grew by 2.6% year-over-year. Charter also announced that residential Internet customers decreased, largely driven by the end of the FCC's ACP subsidies. Despite the loss, Charter assured that “We are executing well on several transformational initiatives, growing EBITDA through efficiencies, and improving our service and sales capabilities. We remain fully focused on driving customer growth, with a unique, high quality product set that continues to evolve, creating long term value for shareholders.”   During the accompanying earnings call that same day, Charter likewise explained that the loss of residential Internet customers due to the end of the ACP was being managed, including that Charter “retained the vast majority of ACP customers so far” and is “growing EBITDA despite the loss of ACP and a competitive cycle by driving efficiency without impacting our service and sales capabilities.” 

On July 25, 2025, Charter issued a press release announcing its second quarter 2025 financial results. Specifically, Charter reported EBITDA of $5.7 billion, which suggested 0.5% growth year-over-year. However, analysts and investors quickly realized that the so-called growth was on account of a $45 million one-time benefit to “other revenue.” Had this event been excluded, Charter’s EBITDA would have missed consensus estimates by 2.4% and shown a second quarter decline of 0.3% year-over-year.  At the same time, Charter reported total Internet customers decreased, which was nearly double compared to the prior quarter. Internet customer declines had also increased year-over-year when compared to a loss of 99,000 customers reported in the second quarter of 2024.  On this news, Charter’s stock price fell $70.25 per share, or 18.4%, to close at $309.75 per share on July 25, 2025.

The complaint 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 that: (1) the impact of the ACP end was a material event Charter was unable to manage or promptly move beyond; (2) the ACP end was actually having a sustaining impact on Internet customer declines and revenue; (3) neither was Charter executing broader operations in a way that would compensate for, or overcome the impact, of the ACP ending; (4) the Internet customer declines and broader failure of Charter’s execution strategy created much greater risks on business plans and earnings growth than reported; (5) accordingly, Charter had no reasonable basis to state the company was successfully executing operations, managing causes of Internet customer declines, or provide overly optimistic statements about the long term trajectory of Charter and its EBITDA growth; and (6) as a result, Defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times. 
 

What is a Lead Plaintiff?

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.