Investors have filed a class action lawsuit against electrical vehicle charging network operator Chargepoint, saying the company allegedly misled them about the company's actual financial performance, damaging their investments.
On Sept. 7, the company's stock dropped about 11 percent after it reported a $28 million "inventory impairment charge," states the lawsuit, filed in U.S. District Court for the Northern District of California.
The company said the charge was taken to "address legacy supply chain-related costs and supply overruns on a particular DC product," the suit said.
On Nov. 16, the company announced another inventory impairment charge of $42 million and that expected revenue had dropped from a range of $150 million to a range of $108 million to $113 million, the lawsuit states. The stock dropped another 35 percent, according to the suit.
Earlier in the year, the company made positive projections for the company's growth, the lawsuit states. On June 1, it issued a press release.
“The positive first quarter results are a testament to the strength and diversity of our business," the press release said, according to the lawsuit. " As the only charging network to operate across all verticals in North America and Europe, we believe we remain well positioned to take advantage of the inevitable long-term growth opportunity ahead.”
The company "made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business,
operations, and prospects," the lawsuit states.
The plaintiffs seek damages, legal fees and court costs.
The plaintiffs are represented by attorneys Robert V. Prongay, Charles Linehan and Pavithra Rajesh, of Glancy, Prongay & Murray LLP, of Los Angeles.
Chan v. Chargepoint Holdings Inc., U.S. District Court for the Northern District of California 5:23-cv-06172.