Shamis & Gentile, P.A provides the following statement on the class action complaint the law firm has filed on behalf of investors:
To: All persons or entities who purchased or otherwise acquired securities of Charter Communications, Inc. (“Charter” or the “Company”) (NASDAQ:CHTR), purchased call options on Charter common stock, or sold put options on Charter common stock, between July 26, 2024 and July 24, 2025, inclusive. You are hereby notified that the class action lawsuit _Sandoval v. Communications, Inc. et al._, Case No. 1:25-cv-06747 has been commenced in the United States District Court for the Southern District of New York.
Impacted investors may complete the form below for more information. Investors may also contact attorney Andrew Shamis at securities@33x.278.mytemp.website or (305) 479-2299. There is no cost or obligation to you.
Charter is a leading broadband connectivity company and cable operator. The Company operates in 41 states with services available to more than 57 million homes and businesses.
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 Federal Communications Commission’s (“FCC”) Affordable Connectivity Program (“ACP”) end was a material event the Company was unable to manage or promptly move beyond; (ii) the ACP end was 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.
On July 25, 2025, Charter issued a press release announcing second quarter 2025 financial results. The Company reported EBITDA of $5.7 billion, which suggested 0.5% growth year-over-year. However, analysts and investors quickly realized that the so-called growth was on account of a $45 million one-time benefit to “other revenue.” Had this event been excluded, EBITDA would have missed consensus estimates by 2.4% and shown a second quarter decline of 0.3% year-over-year.
At the same time, Charter reported total Internet customers decreased by 117,000 for the second quarter of 2025. The decline of Internet customers was nearly double from the 66,000 reported in the prior quarter. Internet customer declines had also increased year-over-year when compared to a loss of 99,000 customers reported in the second quarter of 2024.
These events caused Charter’s stock price to fall $70.25 per share, or 18.4%, to close at $309.75 per share on July 25, 2025.
