Pomerantz Law Firm Files Class Action Against Cepton, Inc. Following Alleged Securities Violations

Class Action Lawsuit Filed Against Cepton, Inc.

On October 18, 2025, Pomerantz LLP, a prominent law firm known for its work in corporate and securities litigation, made headlines by announcing the filing of a class action lawsuit against Cepton, Inc. (NASDAQ: CPTN) and certain of its officers. This action has been brought in the United States District Court for the Northern District of California, under the case number 25-cv-08571. The lawsuit aims to represent all individuals and entities that purchased or sold Cepton's common stock during the specified Class Period, which spans from July 29, 2024, to January 6, 2025.

The allegations focus on supposed violations of federal securities laws. Investors are pursuing remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5. For investors who engaged with Cepton’s securities during the Class Period, December 8, 2025, is the deadline to seek Lead Plaintiff status in the class action.

Background of Cepton, Inc.

Prior to the merger with Koito Manufacturing Co., Ltd., Cepton was recognized as an innovative electronics firm specializing in lidar technologies aimed at enhancing safety and autonomy in automotive and infrastructure applications. They provided a range of lidar products alongside software solutions designed for intelligent transportation systems.

In July 2023, Koito made a significant move by investing $200 million into Cepton, acquiring a 30.1% stake in the company’s voting power. This led to increased involvement in Cepton’s strategic decisions, including a request for the formation of a special committee to consider potential transactions and partnerships.

In December 2023, Koito proposed a cash acquisition for Cepton at $3.17 per share, aiming to consolidate its position in the sensor technology market. The acquisition was publicly announced and approved in July 2024, ultimately being finalized on January 7, 2025. Following the merger's completion, shareholders received cash payments for their shares, marking a significant transition in Cepton's corporate status.

Allegations of Misrepresentation

The complaint filed by Pomerantz LLP levels serious accusations against Cepton’s management, claiming that they made materially false and misleading statements regarding the business’s operational status and governance during the Class Period. Key allegations include:
1. Undisclosed Offers: Cepton allegedly received a credible third-party bid valuing the company at more than double the price offered by Koito, but this was not disclosed to shareholders.
2. Inadequate Exploration of Offers: The management failed to adequately explore this external offer, misleading shareholders regarding the merits of the Koito Acquisition.
3. Deprived Opportunities: As a result of these actions, shareholders were deprived of the opportunity to make informed decisions regarding the acquisition, leading to accusations of corporate mismanagement.
4. Conflicts of Interest: Claims suggest that Cepton’s CEO Juns Pei had conflicts in negotiations with Koito, prioritizing his interests over those of the shareholders.

In May 2025, revelations surfaced as former shareholders initiated two verified class action complaints in Delaware, further substantiating claims of misconduct by Cepton’s executives concerning the Koito deal. These actions were consolidated into a larger lawsuit in July 2025, labeled In re Cepton, Inc. Stockholder Litigation (Case No. 2025-0519-LWW).

The Implications of the Class Action

The unfolding situation may have far-reaching consequences, not just for Cepton and its stakeholders, but also for corporate governance practices across the technology and automotive sectors. Investors looking to join the class action can obtain copies of the filed complaints and further information regarding the legal processes from Pomerantz’s official website.

Pomerantz LLP, recognized as one of the leading firms in securities class action litigation, has been pursuing justice for investors for over eight decades, recovering billions of dollars for victims of corporate fraud and misconduct. Those affected by the Cepton case stand to gain significantly if the allegations are confirmed during the legal proceedings.

For direct inquiries about the lawsuit or to discuss participation, interested parties can reach out to Pomerantz LLP’s representative, Danielle Peyton, through the provided contact details.

Conclusion

As this class action proceeds through the legal system, it serves as a stark reminder of the complexities and risks associated with corporate mergers and the critical importance of transparent governance practices. The outcome of this case could set important precedents regarding corporate accountability and shareholder rights, emphasizing the need for vigilance in investment decisions amidst high-stakes business maneuvers.