Charter Hit with Class Action Suit over ACP Guidance
The complaint alleges investors were misled by company executives.
WASHINGTON, August 25, 2025 – The law firm of Kessler Topaz Meltzer & Check announced Friday a new securities class action lawsuit against Charter Communications, alleging that the company misled investors about its business practices and financial condition. A similar lawsuit was filed earlier in the month following a sharp drop in Charter’s stock price.
The suit, filed on behalf of investors who purchased or acquired Charter securities between July 26, 2024, and July 24, 2025, alleged that the company failed to disclose the true impact of the cancellation of the Affordable Connectivity Program (ACP) in May 2024.
As a leading high-speed internet provider and cable operator, Charter participated in the ACP – a Federal Communications Commission program that provided funding to Charter in exchange for subsidizing high-speed internet plans for low-income households.
After the ACP was cancelled, the company claimed that it had “managed the end of the Affordable Connectivity Program successfully” and that “[t]he impact of the elimination of the ACP is now behind us.”
However, when Charter announced its second quarter 2025 financial results, it was revealed that the company experienced sizable internet customer and revenue declines from the program’s end. As previously reported by Broadband Breakfast, Charter’s July 25 earnings report showed a loss of 117,000 broadband subscribers in the second quarter, sparking a nearly 20 percent drop in shares and wiping out about $9.8 billion in market value.
According to the lawsuit, Charter failed to disclose information that, once revealed, negatively impacted the company’s stock price, causing losses for shareholders.
The complaint further alleged that Charter, in making materially false and misleading statements, violated federal securities laws.
“Charter 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 Charter,” the plaintiffs claimed. “As a result, Defendants' positive statements about the company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.”
This class action follows a similar suit filed by Shamis & Gentile and Edelsberg Law on August 14. Kessler Topaz Meltzer & Check said that shareholders who purchased Charter stock during the alleged “class period” may be eligible to participate in the lawsuit, encouraging affected parties to contact them by October 14, 2025, the deadline to apply for lead plaintiff status.
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