Top brass at electric vehicle charging station company ChargePoint have been hit with a shareholder derivative suit alleging they hid information related to higher component costs and supply overruns for certain charging products. It is alleged that defendants concealed from the public that the company was experiencing supply issues for its first-generation direct current charging products.
Throughout the class period, ChargePoint’s positive statements about its operations and prospects”lacked a reasonable basis,” the complaint alleges. For example, during its June 2023 earnings call, the company failed to mention higher component costs even though the company was aware of them, the complaint alleges. Instead, ChargePoint told investors that the company was continuing to improve gross margins and manage operating expenses, the complaint states. The truth about ChargePoint’s financial state partially emerged a few months later, the complaint alleges, when the company revealed a $28 million impairment charge during its September earnings call. ChargePoint said that the “inventory impairment charge was taken to address legacy supply chain-related costs and supply overruns on a particular [direct current] product,” the complaint states.
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