SAN FRANCISCO, Jan. 05, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges ChargePoint Holdings, Inc. (NYSE: CHPT) investors who suffered substantial losses to submit your losses now.
Class Period: June 1, 2023 – Nov. 16, 2023
Lead Plaintiff Deadline: Jan. 29, 2024
Visit: www.hbsslaw.com/investor-fraud/CHPT
Contact An Attorney Now: CHPT@hbsslaw.com
844-916-0895
ChargePoint Holdings, Inc. (NYSE: CHPT) Securities Fraud Class Action:
“The litigation focuses on whether ChargePoint may have misrepresented product demand and omitted to disclose rising inventory costs,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.
On Dec. 6, ChargePoint posted disappointing quarterly results, reporting a fiscal third-quarter net loss of $158.2 million, or 43 cents a share, compared with a net loss of $84.5 million, or 25 cents a share, in the year-ago quarter. Revenue also declined 12% to $110.3 million from $124.3 million a year ago, missing analyst expectations.
The poor results come on the heels of a recently filed securities class action suit. The complaint there alleges that Defendants misrepresented and concealed that: (1) ChargePoint 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 impacting profitability.
The truth began to emerge on Sep. 6, 2023, when ChargePoint reported its 2Q 2024 financial results, including a “$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.”
Then, on Nov. 16, 2023, ChargePoint announced preliminary Q3 2024 financial results, 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 announced the abrupt departures of its CEO (Pasquale Romano) and, at the request of its board, its CFO (Rex S. Jackson).
Shares of ChargePoint have cratered 78.5% this year, as compared to the S&P 500 index that has increased nearly 20%.
“Based on ChargePoint’s recent disclosures and share performance, we are investigating whether the alleged fraudulent period should be extended,” said Mr. Kathrein.
If you invested in ChargePoint and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the ChargePoint case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding ChargePoint should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email CHPT@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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Contact:
Reed Kathrein, 844-916-0895
