ChargePoint Holdings – Twersky Law Group, a highly regarded and reputable law firm based in New York, wishes to inform investors about a significant development in the form of a class action lawsuit against ChargePoint Holdings, Inc. (“ChargePoint Holdings” or “the Company”) (NASDAQ: CHPT) and certain officers of the company. This lawsuit has been filed on behalf of all individuals and entities that purchased or otherwise acquired ChargePoint Holdings securities from June 1, 2023 through November 16, 2023 (the “Class Period”). Investors who acquired ChargePoint Holdings securities during this defined timeframe are strongly encouraged to participate in this case by contacting firstname.lastname@example.org. The deadline to file a motion for appointment of lead plaintiff is January 29, 2024.
The fundamental objective of this class action lawsuit is to recover for the benefit of investors who purchased ChargePoint Holdings securities during the Class Period, the losses they sustained as a consequence of the misleading statements made by Defendants in violation of the federal securities laws.
ALLEGATIONS AGAINST CHARGEPOINT HOLDINGS
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. The complaint filed in this class action 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.
ABOUT CHARGEPOINT HOLDINGS
- ChargePoint Holdings Inc. is a company that operates in the electric vehicle (EV) charging infrastructure sector. They provide a network of charging stations for electric vehicles, allowing EV users to charge their vehicles at various locations.
- ChargePoint offers a range of charging solutions for residential, commercial, and fleet customers. Their services include hardware, software, and cloud-based solutions to manage and optimize EV charging.
JOIN THIS CASE
It is important to note that a class action lawsuit has already been filed in connection with these allegations. Therefore, for those individuals who suffered financial losses in their investments in ChargePoint Holdings during the Class Period, there is a limited opportunity to seek appointment as a lead plaintiff. This process entails requesting the Court to designate them as the primary representative on behalf of the entire class. The deadline for submitting such a request is January 29, 2023. It is important to emphasize that while becoming a lead plaintiff can offer certain advantages, participation in the recovery process and the potential for financial compensation does not mandate serving as a lead plaintiff.
Twersky Law Group, a distinguished legal firm renowned for its attorneys expertise in handling securities fraud class actions and shareholder derivative suits, who have a long-standing track record of successfully recovering significant sums of money for investors nationwide. With an unwavering commitment to seeking justice for their clients, the firm’s attorneys are resolute in pursuing fair compensation on behalf of those affected by alleged securities law violations. As with any legal matter, it is essential to understand that this announcement constitutes attorney advertising. Past case outcomes and results achieved do not guarantee similar outcomes in this particular case.
Investors who believe they may qualify as potential class members in the class action lawsuit against ChargePoint Holdings are strongly encouraged to reach out directly to the firm for further information and assistance. The knowledgeable legal professionals at Twersky Law Group stand ready to provide guidance and support to investors seeking to protect their rights and pursue the recovery they deserve.