NEW YORK, Dec. 08, 2023 (GLOBE NEWSWIRE) — The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired ChargePoint Holdings, Inc. (“ChargePoint” or the “Company”) (NYSE: CHPT) securities during the period from June 1, 2023 through November 16, 2023 (the “Class Period”). Investors have until January 29, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On September 6, 2023, ChargePoint reported its second quarter fiscal year 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. 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 price of ChargePoint shares declined by $0.77, or approximately 10.91%, from $7.06 per share to close at $6.29 on September 7, 2023.
On November 16, 2023, 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 price of ChargePoint shares declined by $1.11, or approximately 35.46%, from $3.13 per share to close at $2.02 on November 17, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) ChargePoint was experiencing higher component costs and supply overruns for first generation DC charging products; (ii) as a result, the Company was likely to incur impairment charges; (iii) as a result of the foregoing, the Company’s profitability would be adversely impacted; and (iv) 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.
If you purchased or otherwise acquired ChargePoint securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: https://www.kmllp.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
