NEW YORK--(BUSINESS WIRE)--Rolnick Kramer Sadighi LLP (“RKS”) announces that it has filed a class action on behalf of all purchasers of Charge Enterprises, Inc. (“Charge”) common stock between December 15, 2021 and February 28, 2024, both dates inclusive (the “Class Period”). During the Class Period, Charge common stock was publicly traded under the ticker symbol CRGE. This action was filed in the Southern District of New York on May 28, 2024, and is captioned Finkelstein v. Fox, et al., Docket No. 24-CV-04056. The lawsuit seeks remedies against certain former and present officers and directors of Charge under the Securities Exchange Act of 1934 (“Exchange Act”).
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Charge common stock during the Class Period to seek appointment as lead plaintiff in this class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class, assuming the movant is also typical of the putative class and may adequately represent the class. A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit.
The lead plaintiff can select a law firm of its choice to litigate the class action lawsuit. An investor's ability to share in any potential future recovery of the Charge class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff in the Charge class action lawsuit, you must move the Court no later than 60 days from June 11, 2024.
If you wish to discuss the Charge class action lawsuit or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel listed below.
The Charge class action lawsuit alleges that certain present and former officers and directors of Charge violated the Exchange Act by making material misstatements and omissions. The complaint alleges that throughout the Class Period, the defendants made statements about Charge’s internal controls, financial condition and its relationship with an outside asset manager that were materially false and misleading. On November 21, 2023, Charge disclosed that it had received a default notice from its senior lender, Arena Investors, LP (“Arena”), and informed the market that its prior belief that it had “approximately $9.9 million of Company assets . . . in the form of cash, cash equivalents, marketable securities or similar readily liquid assets” was false; instead, these funds had been invested in an illiquid limited partnership interest and were thus “not immediately able to be liquidated or readily accessible.” Charge warned that if it “[continued] not to have sufficient liquidity to pay the principal and interest on the [Arena] Notes. . . these circumstances could result in a default under other of the Company’s debt instruments and agreements that contain cross-default provisions,” which would “have a material adverse effect on the Company’s liquidity, financial condition and results of operations, and may render the Company insolvent and unable to sustain its operations and continue as a going concern.” Charge filed for bankruptcy on March 7, 2024.
RKS is a New York-based securities litigation firm dedicated to serving investors. RKS attorneys have experience litigating class actions, direct actions, varied violations of the securities laws, breaches of fiduciary duties, and other claims. For additional information about RKS, please visit www.rksllp.com
