Charter Communications, Inc. (CHTR) Securities Class Action Lawsuit Update [September 30, 2025]

Introduction to Charter Communications, Inc. (CHTR) Securities Class Action Lawsuit

A securities fraud class action has been filed against Charter Communications, Inc. (NASDAQ: CHTR), its CEO Chris Winfrey, and CFO Jessica Fischer. The complaint covers investors who transacted between July 26, 2024 and July 24, 2025, inclusive. Investors allege the company misrepresented its ability to manage and move beyond the end of the Affordable Connectivity Program (ACP) while still delivering EBITDA growth and stabilizing Internet customer trends. The truth emerged when Charter later disclosed that reported EBITDA growth relied on a one-time benefit and that Internet customer losses worsened. As a result, the stock fell $70.25 per share, or 18.4%, to close at $309.75 on July 25, 2025.

Case Details

Case Name: Sandoval v. Charter Communications, Inc., et al. 

Case No.: 1:25-cv-06747

Jurisdiction: U.S. District Court, Southern District of New York

Filed on: August 14, 2025

Charter Communications, Inc. (CHTR) Company Profile

Charter is a leading broadband connectivity company and cable operator with services available to more than 57 million homes and businesses across 41 states. Its core business is residential Internet services, which historically have generated approximately 90% of annual revenues from more than 30 million residential Internet customers. 

Charter Communications, Inc. (CHTR) Securities Lawsuit Class Period

July 26, 2024–July 24, 2025, inclusive.

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 during the class period might be eligible to join the Charter Communications, Inc. securities lawsuit.

Allegations in the Charter Communications, Inc. (CHTR) Securities Class Action Lawsuit

The lawsuit targets Charter Communications, Inc., CEO Chris Winfrey, and CFO Jessica Fischer. According to the complaint, throughout the period they allegedly led investors to believe Charter could manage the end of the ACP, steady Internet customer trends, and continue to deliver EBITDA growth.

The narrative begins on July 26, 2024, when Winfrey stated in a press release that Charter was executing "transformational initiatives" and improving service and sales capabilities while focusing on customer growth. On the earnings call that day, he told investors that retention teams were handling ACP-related call volume well and that the "vast majority" of ACP customers had been retained, adding that the company was executing well on multi‑year programs. Also on July 26, 2024, Fischer told investors that Charter aimed to deliver solid EBITDA growth despite a challenging environment and the end of the ACP, and that she expected accelerating EBITDA growth in the back half of the year.

As the months progressed, management continued to make positive statements about execution and the ACP's impact, according to the complaint. On November 1, 2024, Winfrey said Charter was "successfully managing" the transition of former ACP customers and claimed that, but for the ACP ending in June, the company would have grown Internet customers in the third quarter. By January 31, 2025, Winfrey asserted the ACP's end had been managed successfully, that roughly 90% of former ACP customers remained connected, and that the ACP's impact was "behind us." On April 25, 2025, he repeated that the ACP headwind was behind the company and said Internet customer results had improved year over year as Charter continued to compete well.

Behind these assurances, the complaint alleges the ACP's end was a material event the company could not promptly move beyond, that ACP impacts were sustaining Internet customer declines and revenue pressure, and that Charter's broader execution was not compensating for those losses. The complaint further alleges these issues created greater risks to business plans and earnings growth than reported, leaving no reasonable basis for Charter's positive statements about execution, customer trends, outlook, and EBITDA growth.

The Truth Emerges

The truth surfaced on July 25, 2025, when Charter issued its second quarter 2025 results via press release and an earnings call. Charter reported year‑over‑year Adjusted EBITDA growth of 0.5% but disclosed this figure included a $45 million one‑time benefit; management indicated that excluding this item EBITDA would have been roughly flat, and an analyst later estimated that without it EBITDA would have missed consensus by 2.4% and declined 0.3% year over year. At the same time, Internet customer losses increased to 117,000, nearly double the prior quarter's 66,000.

On the earnings call, management acknowledged that reported EBITDA included a $45 million one-time benefit and that former ACP customers and newly acquired customers who would have qualified for ACP had higher non-pay rates. CFO Jessica Fischer confirmed that the $45 million one-time benefit largely fell to the bottom line and said that, after factoring that item and unusual storm activity, EBITDA would have been pretty close to flat rather than growing. CEO Chris Winfrey acknowledged that former ACP customers and newly acquired customers who would have qualified for ACP showed higher non‑pay rates, contributing to customer losses. These disclosures, according to the complaint, called into question prior assurances that ACP impacts were behind the company and that EBITDA growth was accelerating.

Market Reaction

Before the market opened on July 25, 2025, Charter announced its second quarter results. As the market absorbed that EBITDA growth depended on a one‑time benefit and that Internet customer losses had accelerated, Charter's stock fell $70.25 per share, or 18.4%, to close at $309.75 that day.

Next Steps

• Submissions for lead plaintiff are due October 14, 2025.
• The Court will issue its order for lead plaintiff and counsel in the weeks after the lead plaintiff deadline. 
• The Court will then consider motion for class certification.     
• The Court will later consider a Motion to Dismiss.    

To learn if you are eligible for recovery under the CHTR securities class action lawsuit, visit the case submission page here.

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.