LEGAL GUIDES FOR INVESTORS
If you suffered losses in ChargePoint stock, contact ChargePoint stock loss lawyer Timothy L. Miles about a ChargePoint class action lawsuit
INTRODUCTION TO THE CHARGEPOINT CLASS ACTION LAWSUIT
The ChargePoint class action lawsuit seeks to represent purchasers or acquirers of ChargePoint Holdings, Inc. (NYSE: CHPT) securities between June 1, 2023 and November 16, 2023, inclusive (the “Class Period”). Captioned Khan v. ChargePoint Holdings, Inc., No. 23-cv-06172 (N.D. Cal.), the ChargePoint class action lawsuit charges ChargePoint and certain of its top executive officers with violations of the Securities Exchange Act of 1934.
If you suffered losses in ChargePoint stock and wish to serve as lead plaintiff in the ChargePoint class action lawsuit, or just have general questions about your rights as a shareholder, please contact ChargePoint Stock Loss Lawyer Timothy L. Miles, at no charge, by calling 855/846-6529 or via e-mail at [email protected] or by submitting a contact form.
Lead plaintiff motions for the ChargePoint class action lawsuit must be filed with the court no later than January 29, 2024.
In this comprehensive shareholder's guide, we will discuss all the options and choices investors have in the ChargePoint class action lawsuit.
what are the ALLEGATIONS IN THE CHARGEPOINT CLASS ACTION LAWSUIT?
The ChargePoint class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) ChargePoint was experiencing higher component costs and supply overruns for first generation DC charging products; (ii) as a result, ChargePoint was likely to incur impairment charges; and (iii) consequently, ChargePoint’s profitability would be adversely impacted.
The ChargePoint class action lawsuit further alleges that on September 6, 2023, ChargePoint reported second quarter of fiscal year 2024 financial results, including a “$28.0 million, or 19 percentage point, inventory impairment charge” that “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 GAAP gross margin of 1%, down from 17% in the prior year’s same quarter, according to the complaint. The ChargePoint class action lawsuit alleges that on this news, the price of ChargePoint stock fell nearly 11%.
Then, on November 16, 2023, ChargePoint announced 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,” the complaint further alleges. ChargePoint expected to report “GAAP gross margin of negative 23% to negative 21%” and further reported revenue had fallen to “$108 million to $113 million, as compared to $150 to $165 million as previously expected,” according to the complaint. The complaint also alleges that ChargePoint’s Chief Executive Officer and Chief Financial Officer were both replaced, effective immediately. The ChargePoint class action lawsuit alleges that on this news, the price of ChargePoint stock fell more than 35%.
WHAT IS A SECURTIES FRAUD CLASS ACTION SUCH AS THE CHARGEPOINT CLASS ACTION LAWSUIT?
A securities fraud class action refers to a legal action taken by a group of investors who have suffered financial losses as a result of fraudulent activities committed by a company or its executives. This type of lawsuit is typically filed when a company misrepresents or withholds important information from investors, leading to a decline in the value of their investments. The purpose of a securities fraud class action is to seek compensation for the affected investors and hold the company accountable for its fraudulent practices. Securities fraud class actions are governed by the PSLRA.
One notable securities fraud class action lawsuit is the ChargePoint class action lawsuit. In this case, investors who purchased ChargePoint securities alleged that the company made false and misleading statements and misled investors, and when the truth was ultimately disclosed, they suffered losses from purchasing shares that had been artificially inflated by the false and misleading information.
Securities fraud class actions are typically initiated by a lead plaintiff or a group of lead plaintiffs who represent the interests of all the affected investors. The lead plaintiff is often an institutional investor or a large shareholder who has suffered substantial losses and possesses the resources and expertise to effectively pursue the lawsuit on behalf of the class. The lead plaintiff's role is crucial in coordinating with legal counsel, gathering evidence, and making strategic decisions throughout the litigation process.
To proceed with a securities fraud class action, the lead plaintiff must demonstrate that there is a common issue of law or fact among the members of the class and that a class action is the most efficient and appropriate method for resolving their claims. If these requirements are met, the court will certify the lawsuit as a class action, allowing all eligible investors to participate in the litigation and share in any potential recovery.
Once certified, the securities fraud class action typically goes through several stages, including discovery, where both parties exchange relevant documents and information, and motion practice, where each side presents legal arguments to the court. If the case does not settle during these stages, it may proceed to trial, where a jury or judge will determine liability and damages.
In securities fraud class actions, the defendants are usually the company accused of fraud and its executives who were involved in the fraudulent activities. The lead plaintiff seeks damages on behalf of all class members, which may include compensation for their financial losses, interest, attorneys' fees, and other costs incurred throughout the litigation process.
In conclusion, a securities fraud class action is a legal mechanism used by investors to seek compensation for financial losses resulting from fraudulent activities committed by a company. The ChargePoint class action lawsuit serves as an example of how investors can hold companies accountable for their alleged misrepresentations and omissions. These lawsuits play an essential role in protecting investor rights and promoting transparency in the financial markets.
WHAT IS THE PSLRA AND HOW DOES IT APPLY TO THE CHARGEPOINT CLASS ACTION LAWSUIT?
The ChargePoint class action lawsuit is governed by the PSLRA. The PSLRA is a landmark legislation enacted in 1995 and was enacted to purportedly protect investors from baseless lawsuits while still allowing legitimate claims such as the ChargePoint class action lawsuit to proceed. This act has had a significant impact on the securities litigation landscape, shaping the way class actions are brought and resolved.
One of the key provisions of the PSLRA is the requirement for plaintiffs to provide specific and particularized facts when alleging a misrepresentation or omission in a securities fraud case. Plaintiffs in the ChargePoint class action lawsuit must state with particularity the facts giving rise to a strong inference that the defendant acted with fraudulent intent.
Another important aspect of the PSLRA is the provision for a stay of discovery pending the resolution of any motions to dismiss in the ChargePoint class action lawsuit. This means that defendants have the opportunity to challenge the sufficiency of the complaint before engaging in discovery. Plaintiffs are, in essence, forced to plead evidence. But with corporate fraud as prevalent as ever, plaintiffs, particularly the top firms, can withstand motions to dismiss and seek justice for shareholders.
The PSLRA also requires courts to appoint lead plaintiffs and lead counsel in securities class actions such as the ChargePoint class action lawsuit. This ensures that investors with the largest financial stake in the litigation are represented and have control over important decisions, such as settlement negotiations. The lead plaintiff must meet certain criteria, including having made a timely request to be appointed as lead plaintiff and having the largest financial interest in the relief sought by the class.
WHAT IS THE LEAD PLAINTIFF DEADLINE IN THE CHARGEPOINT CLASS ACTION LAWSUIT?
When a securities class action is filed such as the ChargePoint class action lawsuit, the person who files the first complaint is required to publish a notice announcing the filing. Anyone who wants to be lead plaintiff on behalf of the class in the ChargePoint class action lawsuit must thereafter file a motion to be appointed as lead plaintiff(s) no later than 60 days after the notice was published.
WHAT ARE MY CHOICES IF I RECEIVE A NOTICE IN THE CHARGEPOINT CLASS ACTION LAWSUIT?
First, read the notice very carefully. You have two choices. First, you can do nothing and remain a member of the class represented by lead counsel. Second, if you believe you have a large enough loss to justify it, you can opt out of the ChargePoint class action lawsuit and file your own separate lawsuit. Note, that if you opt out, you will not be able to participate in any settlement or recovery obtained in the ChargePoint class action lawsuit.
IF I RECEIVE A SETTLEMENT FROM FINRA CAN I STILL PARTICIPATE IN THE CHARGEPOINT LAWSUIT?
Yes, the acceptance of restitution or compensation from a FINRA regulatory settlement does not waive your right to monetary or other benefits through the courts, arbitration, or mediation. Therefore, even if you received a settlement from FINRA, you could still participate in the ChargePoint lawsuit.
WHAT IS THE LEAD PLAINTIFF PROCESS IN THE CHARGEPOINT LAWSUIT?
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased and suffered losses in ChargePoint stock to seek appointment as lead plaintiff in the ChargePoint class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.
A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the securities class action lawsuit. An investor’s ability to share in any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff. If you suffered losses in ChargePoint stock and have further questions, contact ChargePoint stock loss Lawyer Timothy L. Miles today who would fight to recover your damages in a ChargePoint class action lawsuit if you suffered losses in ChargePoint stock.
CAN A NON-U.S. INVESTOR SERVE AS LEAD PLAINTIFF IN THE CHARGEPOINT CLASS ACTION LAWSUIT?
Yes, courts in the U.S. have consistently recognized that non-U.S. investors, many of whom have substantial holdings, are adequate lead plaintiffs and have the same right to move for lead plaintiffs as U.S. investors. Thus, if a non-U.S. investor suffered losses in ChargePoint stock, they may move the Court to be appointed lead plaintiff in the ChargePoint class action lawsuit.
WHAT ARE THE BENEFITS OF SERVING AS LEAD PLAINTIFF IN THE CHARGEPOINT LAWSUIT?
Serving as a Lead Plaintiff in the ChargePoint lawsuit has several advantages and important benefits including:
Thus, there are numerous benefits and other advantages to serving as lead plaintiff in a ChargePoint lawsuit if you suffered significant losses in ChargePoint stock.
WHAT RESPONSIBILITIES WILL THE LEAD PLAINTIFF HAVE IN THE CHARGEPOINT LAWSUIT?
A Lead Plaintiff owes a fiduciary duty to the class, and therefore, must act in the best interest of the class in the ChargePoint lawsuit. Some of the responsibilities of the Lead Plaintiff in the ChargePoint lawsuit include:
CAN I BE APPOINTED LEAD PLAINTIFF IN THE CHARGEPOINT LAWSUIT IF I PURCHASED SHARES OUTSIDE OF THE CLASS PERIOD?
No. Even if you suffered losses in ChargePoint stock, if you purchased securities outside of the Class period, you will not be able to participate in the ChargePoint lawsuit.
WILL THE LEAD PLAINTIFFS GET MORE MONEY THAN CLASS MEMBERS IF THE CHARGEPOINT CLASS ACTION LAWSUIT SETTLES?
No, but they may be entitled to recover their reasonable expenses incurred with are directly related to representing the class in the ChargePoint class action lawsuit. Under the Private Securities Litigation Reform Act of 1995, a Lead Plaintiff is only entitled to his or her pro rata share of any recovery and does not receive any additional money for serving as a representative party on behalf of the class. However, a court, in its discretion, may approve an award of “reasonable costs and expenses (including lost wages)” to a Lead Plaintiff that directly relates to the representation of the class in the ChargePoint class action lawsuit on behalf of investors who suffered losses in ChargePoint stock.
HOW WAS THE CLASS PERIOD DETERMINED IN THE CHARGEPOINT LAWSUIT?
In a securities fraud class action, the class period refers to a period of time in which it is alleged the price of the company’s stock was artificially inflated due to false and misleading statements made by company executives. The class period starts when the company makes an untrue statement of material fact about the company or fails to disclose a material fact necessary to render other statements not misleading. The class period ends when the truth is revealed to the investing public through a corrective disclosure.
To be a part of the class in the ChargePoint lawsuit, you must have suffered losses in ChargePoint stock by purchasing during the class period when it is alleged the price of the stock was artificially inflated to be included in the ChargePoint lawsuit.
IF I SUFFERED LOSSES IN CHARGEPOINT STOCK, HOW MUCH CAN I GET OUT OF THE CHARGEPOINT LAWSUIT?
In a securities fraud class action lawsuit, the plaintiff’s damages are typically calculated as out-of-pocket losses. These losses are expressed as the difference between the price at which the stock was sold and the price at which the stock would have been sold absent any artificial inflation caused by the defendant’s alleged misrepresentations or omissions which is why you suffered losses in ChargePoint stock. Contact a ChargePoint stock loss lawyer for a free case evaluation in the ChargePoint lawsuit who could explain your losses in greater detail if you suffered losses in ChargePoint stock.
WHAT IF I MISS THE LEAD PLAINTIFF DEADLINE IN THE CHARGEPOINT CLASS ACTION LAWSUIT?
If you purchased shares during the class period and suffered losses in suffered losses in ChargePoint stock, then you will automatically be a class member and entitled to share in any potential settlement or recovery. Your ability to be a class member and recover your losses is not dependent on you serving as a lead plaintiff. The sixty-day deadline applies only to those shareholders seeking to be a lead plaintiff in the ChargePoint class action lawsuit.
IF I SUFFERED LOSSES IN CHARGEPOINT STOCK, WHEN CAN I EXPECT TO RECEIVE MY PAYMENT IF THE CHARGEPOINT LAWSUIT SETTLES?
If there is a settlement in the ChargePoint lawsuit, you should receive a court-ordered Notice through the mail which will provide a date when the court will hold a final hearing to decide if it will approve the settlement. If your address changed, you may also find lawsuits through sites such as Consumer Action and ClassAction.org along with instructions on how to submit a claim. The Notice will instruct you what you need to do to file a claim. In some class action settlements, you are automatically submitted and need to do nothing further. However, in others, you may be required to submit more information to proceed such as documentation proving your purchase, such as a receipt or brokerage slip or other evidence that you bought or sold ChargePoint stock during the class period and suffered losses in ChargePoint stock.
The court will hold a final hearing in the ChargePoint lawsuit on a date provided in the Notice to decide whether to finally approve the settlement. If the Court finally approves the settlement, and there are no objections or appeals, settlement payments will be mailed to all Participating Class Members within a few months. However, if there are objections or appeals, resolving them can take a significant amount of time, perhaps more than a year to resolve the ChargePoint lawsuit.
IF THERE IS A SETTLEMENT IN THE CLASS ACTION LAWSUIT, AND I DO NOT THINK IT IS FAIR, WHAT ARE MY OPTIONS AS A CLASS MEMBER?