SAN FRANCISCO, CA / ACCESSWIRE / January 23, 2024 / National plaintiffs law firm Lieff Cabraser Heimann & Bernstein, LLP encourages investors in ChargePoint Holdings, Inc. ("ChargePoint" or the "Company") (NYSE:CHPT) who suffered losses from purchasing or otherwise acquiring the securities of ChargePoint between June 1, 2023 and November 16, 2023 to contact us immediately regarding a pending securities fraud class action against ChargePoint. The deadline to apply to be lead plaintiff is January 29, 2024.
Class Period: June 1, 2023 - November 16, 2023
Lead Plaintiff Motion Deadline: January 29, 2024
Case information:lieffcabraser.com/securities/chargepoint
Contact us: Email or text investorinfo@lchb.com or call 1-800-541-7358
ChargePoint is an electric vehicle infrastructure company. Its core business involves providing networked solutions for charging electric vehicles, including the ChargePoint cloud subscription platform and charging hardware.
The action alleges ChargePoint made false and/or misleading statements and/or failed to disclose that it was experiencing elevated component costs and supply overruns for first generation direct current ("DC") charging products and, as a result, the Company's business and prospects were much worse than defendants claimed.
On September 6, 2023, after the market closed, 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, ChargePoint reported a second quarter generally accepted accounting principles ("GAAP") gross margin of 1%, down from 17% in the prior year's same quarter. On this news, the Company's share price declined $0.77 per share, or 11%, from its closing price of $7.06 on September 6, 2023, to close at $6.29 per share on September 7, 2023, on unusually heavy trading volume.
Then, on November 16, 2023, after the market closed, ChargePoint released preliminary financial results for the third quarter of fiscal year 2024, which included 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%." ChargePoint also reported revenue had fallen to "$108 million to $113 million, as compared to $150 to $165 million as previously expected." Moreover, the Company's Chief Executive Officer and Chief Financial Officer were both replaced, effective immediately. On this news, the ChargePoint's share price declined $1.11 per share, or 35%, from its closing price of $3.13 on November 16, 2023, to close at $2.02 per share on November 17, 2023, on unusually heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with over 120 attorneys in offices in San Francisco, New York, Nashville, and Munich, Germany, is an internationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Recognized as a "Plaintiffs' Powerhouse" by Law360, Lieff Cabraser has litigated some of the most important civil cases in the United States, and has assisted clients in recovering over $129 billion in verdicts and settlements. For over 50 years, Lieff Cabraser has remained committed to ensuring access to justice for all.
Source/Contact
Sharon Lee
Lieff Cabraser Heimann & Bernstein, LLP
415 956-1000
slee@lchb.com
SOURCE: Lieff Cabraser Heimann & Bernstein
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