ChargePoint Agrees to $11M Securities Class Action Settlement
CHPT has more than doubled off its 52-week low of $4.44.
Summary
ChargePoint entered into a Settlement Term Sheet to resolve the Farooq Khan securities class action for an $11 million cash payment, subject to Court approval. The settlement covers the Company and three former executives and includes no admission of wrongdoing.
Key Events · Legal and Risk Events · CHPT
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Securities Class Action Settlement
ChargePoint entered into a Settlement Term Sheet on September 28, 2026 to settle Farooq Khan v. ChargePoint Holdings, Inc. et al., No. 5:23-cv-06172-NW, pending in the Northern District of California.
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$11M Cash Payment
The Company will cause a total cash settlement payment of $11,000,000 to be paid into escrow no later than 21 days following preliminary Court approval or receipt of complete payment instructions.
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Coverage of Former Executives
The settlement fully resolves claims against the Company and individual defendants Pasquale Romano (former CEO), Rex Jackson (former CFO), and Michael Hughes (former Chief Commercial and Revenue Officer).
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No Admission of Wrongdoing
The Proposed Securities Settlement does not assign or reflect any admission of wrongdoing or liability by the Company or the individual defendants, all of whom deny any wrongdoing.
Analysis · CHPT · Manufacturing
ChargePoint has agreed to pay $11 million in cash to settle the securities class action pending in the Northern District of California. The settlement, if approved by the Court, fully resolves claims against the Company and three former executives — former CEO Pasquale Romano, former CFO Rex Jackson, and former Chief Commercial and Revenue Officer Michael Hughes. The Company explicitly states the settlement does not reflect any admission of wrongdoing. The $11 million payment is a material cash outflow for a company that reported continued cash burn in its most recent 10-Q and has already executed two 10% workforce reductions this year. The settlement removes a significant litigation overhang, but the cash payment and the fact that the settlement remains subject to Court approval — with no assurance of approval — are the key risks. The Company expects to execute a final Settlement Agreement and move for preliminary approval within 30 days of the Term Sheet.
How filings like this one have moved
In the 30 days to Oct 1, 2026, 30.2% of the 1644 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.49%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, CHPT was trading at $10.09 on NYSE in the Manufacturing sector, with a market capitalization of approximately $270.7M. The 52-week trading range was $4.44 to $12.61. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.