Pomerantz Law Firm Initiates Class Action Against Cepton, Inc. for Alleged Securities Violations

Overview of the Class Action Against Cepton, Inc.

The Pomerantz Law Firm has officially filed a class action lawsuit against Cepton, Inc., a publicly traded technology company focused on lidar solutions, and certain executive officers. The case, which originates from the United States District Court for the Northern District of California, is filed under the docket number 25-cv-08571. It concerns all individuals and entities who bought or sold shares of Cepton stock from July 29, 2024 to January 6, 2025. The allegations involve breaches of federal securities laws, specifically under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, which relates to the disclosure and use of material information to investors.

Background on Cepton, Inc.

Cepton, Inc. is recognized for its innovations in the field of light detection and ranging (lidar) technologies, which enhances safety and autonomy in the automotive and smart infrastructure sectors. The company has developed various lidar products, including near-range and long-range systems, fortified by sophisticated automotive software and smart lidar systems with integrated perception software.

In July 2023, a significant investment occurred when Koito Manufacturing Co., Ltd., a noted Japanese automotive lighting manufacturer, infused $200 million into Cepton, acquiring a 30.1% voting power stake and two board seats. This strategic partnership led to negotiations for a merger that would significantly influence Cepton's future direction.

The Koito Acquisition

Followed by discussions and negotiations to strengthen both companies, Koito proposed a public acquisition of Cepton for $3.17 per share. The move was outlined as a means to bolster Cepton's capacity to commercialize its lidar technology efficiently. While the Board of Directors initially approved the acquisition, it later faced scrutiny regarding its decision-making process. Allegations arose that the company failed to adequately explore a competing bid that could have valued Cepton significantly higher than Koito's offer.

Allegations in the Class Action

The filed complaint argues that Cepton's executives made misleading statements about the company's business operations and compliance with securities regulations. Indicating that vital information was withheld from shareholders, the plaintiffs assert:
- There existed a credible third-party bid that valued Cepton at more than double Koito's offer, which was not disclosed.
- The Board did not sufficiently investigate this alternate offer, depriving shareholders of a chance to make an informed decision regarding the Koito acquisition.
- As a consequence of these actions, statements made by the Defendants were materially false, leading the shareholders to make uninformed decisions.

The lawsuit further emphasizes that former shareholders of Cepton began recognizing the discrepancies only four months after the merger's conclusion. In May 2025, former shareholders initiated litigation in Delaware, which culminated in a consolidated class action case. The amended complaint cites concerns over undisclosed negotiations and potential conflicts of interest among the board members and executives involved in securing the merger.

Call for Lead Plaintiff

Investors who believe they suffered losses during the class period, which spans the specified dates of transaction activity, are encouraged to contact the Pomerantz Law Firm by email or phone. They have until December 8, 2025, to apply to be designated as the Lead Plaintiff. Detailed information and resources are available on Pomerantz's website, which includes the full complaint documentation.

A Legacy of Advocacy

Pomerantz LLP has a storied tradition of advocating on behalf of investors and holding corporations accountable for fraud and breaches of fiduciary duty. Established over 85 years ago, the firm is known for its first-in-class representation of securities class action plaintiffs, having successfully recovered billions in damages for class members in multifaceted securities and corporate misconduct cases. They remain committed to protecting shareholder rights amidst allegations of deceitful practices and advocating for transparency and integrity in the corporate realm.

For further inquiries regarding this class action or to discuss your potential participation, interested parties can reach out to Danielle Peyton at the Pomerantz Law Firm.