ChargePoint Holdings, Inc.
Investors that purchased the Company’s securities and have suffered a loss, please fill in transaction information below, or email to info@portnoylaw.com.
There is no cost or obligation associated with submitting your information. If you are a shareholder who suffered a loss, please submit your contact information and purchase information to participate in the putative class action.
We also encourage you to contact Lesley F. Portnoy of The Portnoy Law Firm, at 310.692.8883, to discuss your rights free of charge. You can also reach us through the firm’s website at www.portnoylaw.com, or by email at info@portnoylaw.com.
If you choose to take no action, you can remain an absent class member.
Joining the case through the Portnoy Law website enables investors to learn about their legal claims and take an active role in recovering their losses.
The Portnoy Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
CONTACT:
Portnoy Law Firm
Lesley F. Portnoy, Esq.,
www.portnoylaw.com
Office: 310.692.8883
1800 Century Park East, Suite 600
Los Angeles, CA 90067
info@portnoylaw.com
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%.
