Charter Communications Faces Class Action Lawsuit Over FCC Program Impact

What's Happening?

Charter Communications is facing a class action lawsuit alleging that the company made false or misleading statements regarding the impact of the Federal Communications Commission's Affordable Connectivity Program (ACP) ending. The lawsuit claims that Charter Communications failed to manage or move beyond the ACP's end, which has led to sustained declines in internet customers and revenue. The lawsuit further alleges that Charter Communications reported a decrease of 117,000 internet customers in the second quarter of 2025, including 50,000 disconnects related to the ACP's end. This news resulted in an 18% drop in Charter Communications' stock price. Investors who purchased or acquired Charter Communications securities between July 26, 2024, and July 24, 2025, have until October 14, 2025, to seek appointment as lead plaintiff in the lawsuit.

Why It's Important?

The lawsuit against Charter Communications highlights the significant impact regulatory changes can have on major telecommunications companies. The end of the ACP has evidently affected Charter's customer base and financial performance, leading to substantial stock price declines. This situation underscores the importance of transparency and accurate reporting by companies to their investors, as misleading statements can lead to legal challenges and financial losses. The outcome of this lawsuit could set a precedent for how companies manage and disclose the effects of regulatory changes, potentially influencing investor confidence and market stability in the telecommunications sector.

What's Next?

Investors interested in leading the class action lawsuit have until October 14, 2025, to apply for lead plaintiff status. The lawsuit will proceed in the Southern District of New York, where Charter Communications and its executives will face allegations of securities fraud. The legal proceedings will likely involve detailed examinations of Charter's financial disclosures and management strategies during the class period. The case could result in financial restitution for affected investors and may prompt Charter Communications to reassess its communication strategies and regulatory compliance measures.