Sign in Subscribe
Class action lawsuits

Charter Communications Sued for Potential Securities Law Violations

Strategic Insights

— 2 min read

The leading securities law firm, Bleichmar Fonti & Auld LLP, has announced a lawsuit against Charter Communications, Inc. and certain senior executives for potential federal securities law violations. The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Charter securities. The case is pending in the U.S. District Court for the Southern District of New York and is captioned Sandoval v. Charter Communications, Inc., No. 1:25-cv-06747. The lawsuit alleges that Charter failed to disclose the true impact of the Affordable Connectivity Program's (ACP) elimination on customer declines and earnings.

The lawsuit claims that Charter misrepresented the impact of the ACP's elimination, stating 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, the truth was revealed when Charter announced its second quarter 2025 financial results, reporting a total internet customer decrease of 117,000, including approximately 50,000 disconnects related to the end of the ACP. As a result, the price of Charter stock declined 18.4% in a single day.

Key Takeaways:

  • The lawsuit was filed by Bleichmar Fonti & Auld LLP against Charter Communications, Inc. and certain senior executives.
  • The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
  • The lawsuit alleges that Charter failed to disclose the true impact of the ACP's elimination on customer declines and earnings.
  • The case is pending in the U.S. District Court for the Southern District of New York and is captioned Sandoval v. Charter Communications, Inc., No. 1:25-cv-06747.
  • Charter participated in the FCC's Affordable Connectivity Program and received funding in exchange for subsidizing high-speed internet plans for low-income households.
  • The ACP ended in June 2024 due to lack of federal funding, leading to customer declines at Charter.
  • Charter told investors 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."
  • Charter's stock price declined 18.4% on July 25, 2025, after the company announced its second quarter 2025 financial results.

Statistics:

  • Charter's stock price declined 18.4% in a single day after announcing its second quarter 2025 financial results.
  • Charter reported a total internet customer decrease of 117,000 in the second quarter 2025, including approximately 50,000 disconnects related to the end of the ACP.
  • The price of Charter stock declined $70.25 per share from a closing price of $380.00 per share on July 24, 2025, to $309.75 per share on July 25, 2025.

Sources:

  • GlobeNewswire, "Leading Securities Law Firm Announces Lawsuit Against Charter Communications, Inc." (Sept. 28, 2025)
  • SEC, "Charter Communications, Inc." (n.d.)
  • FCC, "Affordable Connectivity Program" (n.d.)

Read more