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CRGE.US
id: 1240

Charge Enterprises (CRGE) Liquidity Crisis And Bankruptcy Case

S.D. New York
Court
1:24-cv-04056
Case number
15 Dec 2021
Class period Start
28 Feb 2024
Class period End
29 Jul 2024
Lead Plaintiff motion deadline
  • $CRGE stockholder filed a claim vs. Charge Enterprises for hiding the liquidity crisis, ineffective controls and defaults on Arena Notes.
  • On March 7, 2024, Charge Enterprises filed for bankruptcy.
  • Charge Enterprises investors can join this case and be notified about potential recovery.
Case Details:

On November 21, 2023, Charge revealed a default notice from Arena Investors, showing that $9.9M in assets were falsely reported as liquid and were actually tied up in KORR Value.

Charge warned that lacking liquidity to pay Arena could trigger defaults on other debts, risking insolvency and shutting down operations.

Then, on December 6, 2023, Charge got more default notices from Arena and announced it would shut down some telecom subsidiaries to save liquidity.

On January 25, 2024, Charge got a foreclosure notice. Arena will auction off 100% of equity in some Charge subsidiaries to settle debts.

On February 28, 2024, Charge reached a Restructuring Support Agreement with Arena affiliates, and NASDAQ suspended $CRGE trading the next day.

Charge filed for bankruptcy on March 7, 2024.

Based on these events, $CRGE stockholder filed a claim against Charge and its leaders, accusing them of the following:
  • Charge faced liquidity issues due to illiquid investments and failed returns from KORR Acquisitions.
  • This led to defaults on Arena Notes and ineffective internal controls.
Considering all the representations, investors suspect Charge Enterprises hid the liquidity crisis, ineffective controls and defaults on Arena Notes.
Case Status
Lead Plaintiff Submission
Alleged Offence
Mismanagement
Misleading Statements
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
07 March 2024
Filing date
28 May 2024
Lead Plaintiff Deadline
29 July 2024
Judge
Hon. Jesse M. Furman
Collecting participants…