A securities class action has been filed against Charter Communications, Inc. (CHTR) on n behalf of all persons and entities who purchased or otherwise acquired Charter securities, purchased call options on Charter common stock, or sold put options on Charter common stock, between July 26, 2024 through July 24, 2025. This case has been filed in the USDC – SDNY.
On July 25, 2025, Charter released its second quarter 2025 financial results, reporting that total internet customers had declined by 117,000, compared to about 100,000 in the second quarter of 2024, when adjusted to remove the prior year’s impact of the end of the Affordable Connectivity Program. The Company’s total video customers also decreased by 80,000.
On this news, Charter’s stock price fell $70.25 per share, or 18.5%, to close at $309.75 per share on July 25, 2025.
The complaint alleges Defendants failed to disclose material adverse facts about the Company’s business, operations, and outlook. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the impact of the ACP end was a material event the Company was unable to manage or promptly move beyond; (ii) the ACP end was actually having a sustaining impact on Internet customer declines and revenue; (iii) neither was the Company executing broader operations in a way that would compensate for, or overcome the impact, of the ACP ending; (iv) the Internet customer declines and broader failure of Charter’s execution strategy created much greater risks on business plans and earnings growth than reported; (v) accordingly, the Company had no reasonable basis to state the Company was successfully executing operations, managing causes of Internet customer declines, or provide overly optimistic statements about the long term trajectory of the Company and EBITDA growth; and (iv) as a result of the foregoing, Defendants materially misled with, and/or lacked a reasonable basis for, their positive statements about the Company’s business, operations, outlook during the Class Period.