Blink Charging receives preliminary court approval for derivative action settlement

Blink Charging Co. (NASDAQ:BLNK), the EV charging company with a market capitalization of $114 million, announced Tuesday that the Clark County, Nevada District Court has granted preliminary approval for a proposed settlement in a derivative action involving the company and certain current and former directors and officers. According to InvestingPro data, the company maintains a strong liquidity position with more cash than debt on its balance sheet. The proposed settlement, which is subject to final court approval, relates to the case McCauley (derivatively on behalf of Blink Charging Co.) v. Farkas, et al., Case No. A-22-847894-C.

According to a press release statement, the settlement covers both the Nevada action and a related consolidated derivative action in Miami Dade County, Florida. Under the terms, Blink Charging will implement certain corporate governance reforms. The company’s insurer is expected to pay $553,750 in attorneys’ fees and expenses to plaintiffs’ counsel, which includes payments of up to $2,000 to each named plaintiff. The settlement does not require any monetary payment from the director defendants.

The derivative litigation involved claims of breach of fiduciary duties, corporate waste, and unjust enrichment against current and former board members and a former chief financial officer. These claims were connected to statements made by the company that were at issue in a separate securities class action, Bush v. Blink Charging Co., et al., which was settled in October 2024.

The defendants in the derivative action deny any fault, liability, or wrongdoing, and there has been no adjudication on the merits of the claims.

Blink Charging stated that the Notice of Pendency and Proposed Settlement of Derivative Actions and the Stipulation and Agreement of Settlement are available as exhibits to its current SEC filing and on the investor relations page of its website.

All information is based on the company’s Form 8-K filing with the Securities and Exchange Commission.

In other recent news, Blink Charging Co. has reported its second-quarter revenue at $28.7 million, marking a 38% increase from the previous quarter and a 14% rise compared to the same period last year. This revenue figure surpassed consensus estimates of $22 million, largely due to a surge in product sales and record service revenues. Meanwhile, H.C. Wainwright has reiterated its Buy rating with a $5 target price, following these financial results. Benchmark also maintained its Buy rating with a $2 target price, despite inventory charges. On the acquisition front, Blink Charging finalized a warrant agreement with former equity holders of Envoy Technologies, resolving outstanding payment obligations. Additionally, Blink Charging has announced a partnership with Nexxtlab to enhance energy management tools for electric vehicle fleets in Europe. The collaboration aims to integrate Blink’s EV charging locations with Nexxtlab’s Smartmaster platform. Needham, however, has maintained a Hold rating, highlighting a mixed outlook due to both improving fundamentals and ongoing challenges in the EV charging sector.

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