Cepton Faces Class Action for Concealing Competing Bid Valued Over Double Koito's Offer
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 01 2025
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Source: PRnewswire
- Lawsuit Initiation: Berger Montague has filed a class action lawsuit against Cepton on behalf of investors who traded shares between July 29, 2024, and January 6, 2025, alleging the company concealed a competing bid that valued shares at over double Koito's offer, denying shareholders a fair assessment of the deal.
- Acquisition Risks: Cepton failed to disclose a third-party acquisition bid exceeding $3.17 per share during its merger with Koito, potentially leading to significant financial losses for shareholders, with this information only surfacing four months post-merger.
- Board Negligence: The lawsuit claims that Cepton's Board of Directors did not adequately explore the competing offer and failed to disclose its terms when recommending the Koito transaction, indicating a disregard for shareholder interests that could result in legal repercussions.
- Conflict of Interest: The complaint also highlights conflicts of interest involving Cepton's CEO regarding the Koito proposal, raising further concerns about corporate governance and potentially impacting investor trust and stock performance going forward.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
