Two senior executives at Charter Communications (NASDAQ: CHTR), the Stamford, CT-based cable company, are named in a class action lawsuit, Broadband Breakfast reported. The suit, filed on August 14, alleges that Charter CEO Chris Winfrey and CFO Jessica Fischer violated securities law related to company statements regarding the financial impact of the May 2024 termination of a federal broadband subsidy for low-income households.
The Affordable Connectivity Program (ACP) was implemented on December 31, 2021, when the FCC officially launched the program following its authorization under the Infrastructure Investment and Jobs Act, signed into law on November 15, 2021. The ACP shut down on May 31, 2024, after depleting funding that provided $30 monthly internet discounts to eligible low-income households.
The complaint, which was filed in the U.S. District Court for the Southern District of New York, states that Winfrey and Fischer allegedly made false or misleading statements or failed to disclose that the end of the ACP was a significant material event the company could not effectively address, and that the conclusion of the ACP was contributing to ongoing declines in internet customers and revenue.
Moreover, the complaint contends that Charter’s stock “traded at artificially inflated prices” during the period between July 26, 2024, and July 24, 2025. Charter, which reached a peak of 5 million ACP enrollees during the program, declined to comment.
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