Charter Communications is confronting a significant legal challenge as multiple law firms filed class-action lawsuits against the broadband provider on Friday. The core allegation claims the company misled investors regarding the impact of customer cancellations following the expiration of a key government subsidy program. This legal action places additional pressure on a stock already struggling in 2025.
Quarterly Report Reveals Steep Subscriber Decline
The legal complaints focus on the period from July 2024 to July 2025, alleging that Charter Communications made false and misleading statements about its ability to manage the aftermath of the Affordable Connectivity Program’s (ACP) expiration in June 2024. The situation came to a head with the company’s quarterly earnings report at the end of July 2025. Contrary to management’s previous assurances, Charter reported a net loss of 117,000 internet customers. Notably, half of these losses were directly attributed to the conclusion of the ACP. This customer decline was nearly double that of the previous quarter, triggering an immediate 18.4% drop in the share price. Plaintiff attorneys argue this outcome directly contradicts the company’s earlier, more optimistic portrayals.
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Critical Deadlines and Ongoing Challenges for Shareholders
For investors affected by these developments, the deadline to apply as a lead plaintiff is October 13 or 14, 2025. Market attention, however, is sharply focused on the next quarterly report scheduled for October 31. This upcoming release will be crucial in determining whether the subscriber downturn is persisting or if Charter has managed to stabilize its customer base.
The wave of litigation arrives at an inopportune moment for the company. Charter’s stock has already declined by more than 30% since the start of the year and is laboring to recover from its 52-week low. The coming weeks will reveal whether the share price can withstand this renewed legal pressure.
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