CHPT Class Action Alert: Robbins LLP Reminds Investors of Lead Plaintiff Deadline in ChargePoint Holdings, Inc. Class Action

SAN DIEGO, Dec. 07, 2023 (GLOBE NEWSWIRE) -- Robbins LLP reminds investors that a shareholder filed a class action lawsuit on behalf of persons and entities that purchased or otherwise acquired ChargePoint Holdings, Inc. (NYSE: CHPT) securities between June 1, 2023 and November 16, 2023. ChargePoint provides networked solutions for charging electric vehicles, including the ChargePoint cloud subscription platform and charging hardware.

For more information, submit a form, email Aaron Dumas, Jr., or give us a call at (800) 350-6003.

What is this Case About: ChargePoint Holdings, Inc. (CHPT) Failed to Disclose Material Information Regarding its First Generation DC Charging Products

The complaint alleges that on September 6, 2023, 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.

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.

According to the complaint, during the class period, defendants failed to disclose that: (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; and (3) therefore, the Company’s profitability would be adversely impacted.

What Now: Similarly situated shareholders may be eligible to participate in the class action against ChargePoint Holdings, Inc. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. Plaintiffs must file their lead plaintiff papers by January 29, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.

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