Charter Communications Shares Plunge Amid Legal Scrutiny as Stock Ranks 270th in $330M Trading Volume

On August 25, 2025, Charter Communications (CHTR) closed at a 1.49% decline with a trading volume of $330 million, ranking 270th in the market. The stock faces renewed legal scrutiny amid two class-action lawsuits alleging securities fraud. Both cases, filed by law firms representing investors, claim Charter and its executives misrepresented their ability to mitigate the fallout from the Affordable Connectivity Program (ACP) ending in 2024. The lawsuits allege the company failed to disclose the sustained impact of ACP’s termination on customer losses and revenue, despite public assurances of successful management. The suits cite Q2 2025 results showing a 117,000 internet customer decline, including 50,000 attributed to ACP-related disconnects.

Investors who purchased CHTR shares between July 2024 and July 2025 have until October 14 to seek lead plaintiff status in the litigation. The suits argue Charter’s optimistic statements about EBITDA growth and operational execution were unfounded, exacerbating risks to its business model. Legal experts note the cases could influence investor sentiment, though no immediate regulatory action has been announced. The stock’s recent underperformance reflects broader market caution following the litigation disclosures.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day generated $2,940 in profits from December 2021 to August 2025. However, the approach faced a maximum drawdown of -$1,960 during the same period, with a Sharpe ratio of 1.53. December 2021 was the most profitable month ($840), while August 2025 recorded the worst loss (-$320).