A class action lawsuit was filed against Charter Communications (CHTR) by Levi & Korsinsky on August 14, 2025. The plaintiffs (shareholders) alleged that they bought CHTR stock at artificially inflated prices between July 26, 2024, and July 24, 2025 (Class Period) and are now seeking compensation for their financial losses. Investors who bought Charter Communications stock during that period can click here to learn about joining the lawsuit.
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Charter Communications is an American broadband connectivity and cable company. The provision of residential internet is Charter’s core business and has historically generated most of its revenue through subscriptions. Charter joined the FCC’s Affordable Connectivity Program (ACP) in December 2021 as part of a strategy to expand its broadband reach. However, the ACP ended in 2024 due to funding shortages.
The company’s claims about the ACP and the potential impact of its ending are at the heart of the current complaint.
Charter Communications’ Misleading Claims
According to the lawsuit, Charter and two of its senior officers (the Defendants) repeatedly made false and misleading public statements throughout the Class Period. In particular, they are accused of omitting truthful information about the effects of the termination of the ACP on the company’s business, and ancillary issues, from SEC filings and related material.
During the Class Period, the defendants kept reiterating the company’s efforts to retain customers and connectivity plans. For instance, the CEO stated in an earnings call that the company had worked hard on the ACP program, but it was not renewed. Since early 2024, Charter Communications has been helping customers stay connected. Its service and retention teams were handling the calls well and had preserved most of the ACP customers.
Moreover, in a press release dated November 1, 2024, the CEO stated that the company’s pricing and packaging strategies helped save customers’ money with the best products. Additionally, its service capability and investment were yet to be fully realized as a competitive advantage.
Finally, during an earnings call held on the same day, the CEO noted that Charter was managing the transition of customers after the government’s affordable connectivity program ended, despite new competition. The company expected some stability in 2025 with lower capital spending, but it also continued to make progress as was shown by recent announcements.
However, subsequent events (detailed below) revealed that the defendants failed to inform investors that the end of the ACP was actually having a sustaining impact on Internet customer declines and revenue.
Plaintiffs’ Arguments
The plaintiffs maintain that the defendants deceived investors by lying and withholding critical information about the company’s business, operations, and outlook during the Class Period. Importantly, the company was neither running broader operations to offset nor attempting to overcome the impact of the ACP ending. As such, the company was not in a position to provide overly optimistic statements about its long-term trajectory and earnings growth.
The information became clear on July 25, 2025, when Charter Communications released its second-quarter fiscal 2025 results. In this context, the company revealed that total Internet customers decreased by 117,000 in Q2. In contrast, the company had reported a decline of 66,000 Internet customers in the prior quarter and a loss of 99,000 customers in the second quarter of 2024. Following the news, CHTR stock dropped 18.5% on the same day and continued to decline for a couple more trading sessions.
To conclude, the defendants failed to inform investors that the Internet customer declines and broader failure of Charter’s execution strategy created much greater risks on business plans and earnings growth than reported. Due to these issues, CHTR stock has lost 21% so far this year.
