Unpacking the Allegations: inside the ChargePoint Class Action Lawsuit

If you suffered losses in ChargePoint stock, contact ChargePoint stock loss lawyer Timothy L. Miles about a ChargePoint class action lawsuit

summary of THE CHARGEPOINT CLASS ACTION LAWSUIT

Contact a ChargePoint stock loss lawyer about a 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, please contact ChargePoint Stock Loss Lawyer Timothy L. Miles 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.

Read on as we unpack the allegations and take a deep dive into the ChargePoint class action lawsuit.

---

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%.

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. 

THE LEAD PLAINTIFF PROCESS IN THE CHARGEPOINT CLASS ACTION 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

A NON-U.S. INVESTOR may 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.

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:

• A Lead Plaintiff is able to negotiate more competitive attorney fees and reduce other litigation costs by actively monitoring the class counsel.
• Lead Plaintiff has the benefit of being able to manage the litigation primarily by overseeing and monitoring the progress of the action and the efforts of counsel, and being able to review and comment on important filings and other documents pertaining to the prosecution of the action.
• There is no financial risk in serving as a Lead Plaintiff because Lead Counsel advances all costs and expenses incurred in the prosecution of the case and will be reimbursed only if there is a successful settlement or judgment recovery on behalf of the class.
• Lead Plaintiff has the benefit of being involved and active in all negotiations relating to any settlement.
• Lead Plaintiffs that continue owning the stock of the defendant will enjoy the long-term benefits from governance reform resulting from the litigation. 

Thus, there are numerous benefits and other advantages to serving as lead plaintiff in a class action against ChargePoint if you suffered significant losses in ChargePoint​ stock. ​

RESPONSIBILITIES THE LEAD PLAINTIFF will HAVE IN THE CHARGEPOINT CLASS ACTION 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 class action lawsuit.  Some of the responsibilities of the Lead Plaintiff in the ChargePoint class action lawsuit include:

• Selecting, monitoring, and overseeing Lead Counsel.
• Reviewing and commenting on court filings on behalf of the class.
• Discussing litigation strategies with the Lead Counsel.
• Attending depositions (if necessary) and giving a deposition.
• Attending hearings (if necessary).
• Participating in mediation and the trial (if necessary).
• Provide input on any decision concerning the settlement of the securities class action.

THE LEAD PLAINTIFFS will not GET MORE MONEY THAN CLASS MEMBERS IF THE CHARGEPOINT CLASS ACTION LAWSUIT SETTLES

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. ​

THE COURT may APPOINT MORE THAN ONE LEAD PLAINTIFF IN THE CHARGEPOINT LAWSUIT

​​At its discretion, the Court may appoint a person, entity, or group of persons and/or entities as Lead Plaintiffs to oversee the ChargePoint​ lawsuit.

THE CLASS PERIOD DETERMInation 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 class action against ChargePoint​​.  ​

THE DIFFERENCE BETWEEN OBJECTING AND EXCLUDING MYSELF IN THE CHARGEPOINT​ LAWSUIT

​​Objecting is telling the Court you do not believe the settlement in the ChargePoint​ lawsuit, or some part of it, is fair or reasonable.  You can file an objection only if you stay in the Class and do not exclude yourself, and you may submit a Claim Form even if you object to the settlement.  On the other hand, requesting exclusion is explicitly telling the Court you do not want to be part of the Class or the Settlement in the class action against ChargePoint​. If you exclude yourself, you cannot object to the Settlement because you no longer have standing as you are not a class member anymore. Similarly, you cannot submit a Claim Form. If you stay in the Class and object, but your objection is overruled, you will not be allowed a second opportunity to exclude yourself.

CONTACT A CHARGEPOINT​ STOCK LOSS LAWYER TODAY IF YOU SUFFERED LOSSES IN CHARGEPOINT​ STOCK ABOUT A CHARGEPOINT​ CLASS ACTION LAWSUIT

​If you suffered losses in ChargePoint​ stock, contact ChargePoint​ stock loss lawyer Timothy L. Miles today for a free case evaluation about a ChargePoint​ ​class action lawsuit. Call today and see what a ChargePoint​ stock loss lawyer could do for you if you suffered losses in ChargePoint​ ​stock.

ChargePoint​ stock loss lawyer Timothy L. Miles

Nashville attorney Timothy L. Miles is a nationally recognized shareholder rights attorney raised in Nashville, Tennessee. Mr. Miles has dedicated his career to representing shareholders, employees, and consumers in complex class-action litigation. Whether serving as lead, co-lead, or liaison counsel, Mr. Miles has helped recover hundreds of millions of dollars for defrauded investors,  shaped precedent-setting decisions, and delivered real corporate governance reforms. Judges and peers have repeatedly recognized Mr. Miles’ relentless advocacy for the underdog, as well as his unbendable ethical standards. Mr. Miles was recently selected by Martindale-Hubbell® and ALM as a 2022 Top Ranked Lawyer, 2022 Top Rated Litigator. and a 2022 Elite Lawyer of the South. Mr. Miles also maintains the AV Preeminent Rating by Martindale-Hubbell®, their highest rating for both legal ability and ethics. Mr. Miles is a member of the prestigious Top 100 Civil Plaintiff Trial Lawyers: The National Trial Lawyers Association,​Class Action:  Class Action: Top National Trial Lawyers, National Trial Lawyers Association (2023), a superb rated attorney by Avvo, a recipient of the Lifetime Achievement Award by Premier Lawyers of America (2019) and recognized as a Distinguished Lawyer, Recognizing Excellence in Securities Law, by Lawyers of Distinction (2019); a Top Rated Litigator by Martindale-Hubbell® and ALM  (2019-2022); America’s Most Honored Lawyers 2020 – Top 1% by America’s Most Honored (2020-2022).  Mr. Miles has published over sixty articles on various issues of the law, including class actions, whistleblower cases, products liability, civil procedure, derivative actions, corporate takeover litigation, corporate formation, mass torts, dangerous drugs, and more.  Please visit our website or call for free anytime.

CONTACT                                                      
The Law Offices of Timothy L. Miles
Tapestry at Brentwood Town Center
​300 Centerview Dr., #247
Brentwood, TN 37027