Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Jan. 24, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises ChargePoint Holdings, Inc. (NYSE: CHPT) investors that a lawsuit was filed on behalf of investors that purchased ChargePoint securities between Dec. 7, 2021 through Nov. 16, 2023, inclusive.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
The recent class action lawsuit against ChargePoint asserts that during the Extended Class Period, the defendants engaged in false or misleading statements and failed to disclose certain crucial information, which includes the following:
- ChargePoint encountered increased component costs and supply issues with their first-generation DC charging products.
- Consequently, ChargePoint was likely to face impairment charges.
- This, in turn, would have a negative impact on ChargePoint's profitability.
The lawsuit contends that the truth behind these allegations began to surface on September 6, 2023, when ChargePoint released its financial results for the second quarter of fiscal year 2024. These results included a significant "inventory impairment charge" of $28.0 million, representing a 19 percentage point reduction in GAAP gross margin from the previous year's same quarter (down to 1%). Following this announcement, the price of ChargePoint stock plummeted by nearly 11%.
Subsequently, on November 16, 2023, ChargePoint disclosed preliminary financial results for the third quarter of fiscal year 2024. This update indicated an "additional non-cash inventory impairment charge" of $42 million, primarily linked to product transitions and realigning inventory with current demand. The company anticipated reporting a negative GAAP gross margin ranging from -23% to -21% and revealed a decline in revenue to a range of $108 million to $113 million, significantly lower than the previously expected range of $150 million to $165 million. Furthermore, ChargePoint's CEO and CFO were immediately replaced. In response to this news, the price of ChargePoint stock plummeted by over 35%.
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The Portnoy Law Firm represents investors in pursuing claims caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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