ChargePoint Holdings has agreed to pay $11,000,000 in cash to settle a securities class action filed on behalf of people who bought its stock between December 7, 2021 and November 16, 2023. The company signed a settlement term sheet on September 28, 2026 and disclosed it in a Form 8-K filed September 30. The deal is not final. It still needs approval from the U.S. District Court for the Northern District of California, and the filing says "there can be no assurance that the Court will approve the Proposed Securities Settlement."
The case is Farooq Khan v. ChargePoint Holdings, Inc. et al., No. 5:23-cv-06172-NW. Besides the company, the defendants are former CEO Pasquale Romano, former CFO Rex Jackson and former Chief Commercial and Revenue Officer Michael Hughes. The 8-K says the settlement does not reflect any admission of wrongdoing or liability by the company or the individual defendants, and all of them deny wrongdoing.
What the settlement terms say
The 8-K sets out the main terms of the term sheet:
- Payment: $11,000,000 in cash, paid into escrow no later than 21 days after the later of two events: the court's preliminary approval, or ChargePoint receiving complete payment instructions.
- Next filing: ChargePoint expects the parties to sign a final settlement agreement and seek preliminary approval within 30 calendar days of executing the term sheet. Counting from September 28, that window runs to October 28, 2026.
- Approval: The settlement is subject in all respects to court approval.
According to a settlement explainer from AllAboutLawyer, an unofficial secondary source, the $11 million is a proposed gross amount, not what investors will divide. Court-approved attorneys' fees, litigation expenses and administration costs could reduce what reaches class members. The same site says the case is before Judge Noël Wise in San Jose, and it names Shahram Afshani and Paulina Afshani Schwartz as lead plaintiffs and Hagens Berman Sobol Shapiro LLP as lead counsel.
What the lawsuit alleged
ChargePoint's quarterly report for the period ended July 31, 2026, filed September 4, describes the claims. The lead plaintiffs' consolidated complaint, filed July 19, 2024, purported to cover purchasers of the company's stock between December 7, 2021 and November 16, 2023. It alleged materially false and misleading statements in violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5(b). The statements concerned ChargePoint's handling of supply-chain disruptions, its revenue and the value of its inventory. The plaintiffs also alleged a scheme to prematurely recognize revenue. These are allegations. No court has ruled on their merits.
How the case got here
The term sheet was signed about four months after the court denied the defendants' latest motion to dismiss, and before the discovery and mediation deadlines in the court's schedule. The 10-Q gives this procedural history:
| Date | Event |
|---|---|
| Nov 29, 2023 | First class action filed |
| Jan 22, 2024 | Second class action filed |
| May 16, 2024 | Court consolidates the cases as Khan v. ChargePoint |
| July 19, 2024 | Lead plaintiffs file Consolidated Amended Complaint |
| July 22, 2025 | Second Amended Complaint filed, naming an additional former officer |
| Feb 20, 2026 | Court grants motion to dismiss Second Amended Complaint with leave to amend |
| Mar 3, 2026 | Third Amended Complaint filed |
| May 21, 2026 | Court denies motion to dismiss |
| May 22, 2026 | Court enters scheduling order |
| Sept 28, 2026 | ChargePoint signs settlement term sheet |
| Sept 30, 2026 | ChargePoint files 8-K disclosing the term sheet |
Under the May 22 scheduling order described in the 10-Q, fact discovery was to close December 11, 2026, mediation was to be completed by December 30, 2026, and trial was set for July 26, 2027.
What happens next
The next step is a final settlement agreement and a motion asking the court for preliminary approval, which ChargePoint expects within the 30-day window. If the judge grants preliminary approval, the 21-day clock for funding the escrow can begin.
The claims process has not started. AllAboutLawyer reported that, as of October 1, 2026, there was no settlement website, no claim form, no claim deadline and no verified settlement administrator. It said an administrator and website are expected only after the court grants preliminary approval, and it warned readers not to file with any site claiming otherwise.
What It Means for Drivers
This is a dispute between ChargePoint and people who bought its stock. Charging at a ChargePoint station or holding a ChargePoint driver account does not by itself make someone part of the proposed class, which is defined by stock purchases. The term sheet covers a cash payment into escrow by the company; charging service, stations and the ChargePoint app are not part of it.
Drivers who also bought ChargePoint shares during the class period have nothing to file yet. A claim form and deadline would come only after preliminary approval. To follow the case, look up No. 5:23-cv-06172-NW on the Northern District of California docket or check ChargePoint's SEC filings, and treat any settlement notice or claims site with caution until a court-approved administrator is named.
Sources
- ChargePoint Holdings, Form 8-K, Item 8.01 (event Sept 28, 2026; filed Sept 30, 2026), SEC EDGAR
- ChargePoint Holdings, Form 10-Q for the quarter ended July 31, 2026 (filed Sept 4, 2026), Legal Proceedings, SEC EDGAR
- AllAboutLawyer, ChargePoint $11 million securities settlement explainer (status as of Oct 1, 2026)
