SAN FRANCISCO, Dec. 04, 2023 (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 complaint 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; (3) that, as a result of the foregoing, the Company’s profitability would be adversely impacted; and (4) that, 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.
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.” As a result, the Company reported quarterly GAAP gross margin of 1%, down from 17% in the prior year’s same quarter.
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).
These events caused the price of ChargePoint shares to drop sharply.
“We’re focused on investors’ losses and are investigating whether ChargePoint may have misrepresented product demand and omitted to disclose rising inventory costs,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
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
