Kessler Topaz Meltzer & Check, LLP Has Filed a Securities Fraud Class Action Lawsuit Against Enphase Energy, Inc. (ENPH) By Investing.com

RADNOR, PA – (NewMediaWire) – December 21, 2024 – The law firm Kessler Topaz Meltzer & Check, LLP informs investors that the firm has filed a securities fraud class action lawsuit against Enphase Energy, Inc. (NASDAQ: NASDAQ 🙂 (Enphase or the Company) on behalf of all persons and entities who purchased or otherwise acquired Enphase common stock between April 25, 2023 and October January 22, 2024, inclusive (the Class Period). This action, titled Trustees of the Welfare and Pension Funds of Local 464A – Pension Fund v. Enphase Energy, Inc., et al. , Case No. 3:24-cv-09038-JST, was filed in the United States District Court for the Northern District of California.

Important Deadline Reminder: Investors who purchased or otherwise acquired Enphase common stock during the Class Period may, no later than February 11, 2025, ask the Court to serve as lead plaintiff for the class.

CONTACT KESSLER TOPAZ MELTZER & CHECK, LLP:

If you suffered losses at Enphase, you can CLICK HERE or copy and paste this link into your browser: https://www.ktmc.com/new-cases/enphase-energy-inc-class-action?utm_source=PR&utm_medium=link&utm_campaign= enph&mktm=r

You can also contact attorney Jonathan Naji, Esq. of Kessler Topaz by calling (484) 270-1453 or by email at info@ktmc.com.

MISCONDUCT OF DEFENDANTS

Enphase develops, manufactures and sells solar microinverters, which are primarily used in residential solar installations to convert the output of solar panels from direct current to alternating current (which can be transmitted to the electrical grid). As relevant here, Enphase’s international revenues have been growing in recent years as the Company expands globally, particularly in Europe, and international revenues will represent more than 35% of the Company’s total revenues in 2023.

Prior to the start of the Class Period, Chinese solar companies were significantly disrupting the European solar inverter market by selling or dumping their products at extremely low prices, a fact highlighted by Morgan Stanley (NYSE:) Research on April 24, 2023, when it reported that the export value of Chinese investors increased 156% year over year internationally, and the Netherlands and Germany, two of Enphases’ key markets in Europe, showed year-on-year increases of 342% and 330%, respectively.

The Class Period begins on April 25, 2023, when the Company announced its first quarter 2023 financial results. Among other things, Enphase reported an approximately 25% year-over-year increase in European revenue. During the quarterly investor earnings call held earlier in the day, defendant Badrinarayanan Kothandaraman, the company’s president and CEO, touted that Enphase’s European business is growing rapidly and that direct sales of our microinverters in Europe have reached a high. historical. in the quarter. When asked specifically about competition from Chinese manufacturers in Europe and the risk of margin erosion caused by price deflation from those competitors, defendant Raghuveer Belur, the company’s co-founder and senior vice president and chief product officer of the company , dismissed such concerns and stated that (c)competition is strong everywhere and is nothing new (in Europe), while defendant Kothandaraman stated that Enphase does not see any drop in (its) prices.

Investors began to learn the truth about Enphases’ competitive challenges in Europe after the market close on October 26, 2023, when the Company reported a roughly 34% quarter-over-quarter decline in European revenue in the third quarter of 2023 due to the weakening of demand. . During the quarterly investor earnings conference call held that same day, Defendant Kothandaraman insisted that the Company would not adjust its pricing strategies, despite counteracting competitive market forces, and emphasized that we will not make no broad-based price adjustment on our part.

In response to declining European revenue and defendant Kothandaraman’s unwillingness to consider price adjustments, analysts at BofA Securities reiterated their underperform rating on the stock and criticized the Company for refusing to reduce prices to gain market share, as competitive risks remained in Europe. On this news, the price of Enphase common stock decreased $14.09 per share, or nearly 15%, from a close of $96.18 per share on October 26, 2023, to close at $82.09 per share on October 27, 2023.

Throughout the remainder of the Class Period, Defendants continued to downplay competitive threats in the European solar inverter market and assured investors that Enphases’ European pricing strategy was sound.

Investors fully learned the truth about Enphase’s competitive positioning in Europe after the market close on October 22, 2024, when the Company announced its third quarter 2024 financial results and revealed an approximately 15% quarter-over-quarter decline in European income due to further weakening. in European demand. During the quarterly investor earnings call held that same day, Defendant Kothandaraman was asked again whether, in light of the company’s weakness in Europe, Enphase would alter its pricing strategy. While acknowledging that the Company had occasionally made specific price concessions to customers, respondent Kothandaraman reiterated that we are not going to lower prices anywhere, despite the prevailing competitive winds.

In response to Enphase’s continued poor performance in Europe, Guggenheim downgraded Enphase’s stock to a sell rating from a neutral rating and explained that Enphase is losing share to Chinese competitors that are willing to sell for less than half. of the level (from Enphase). On this news, the price of Enphase common stock decreased $13.76 per share, or nearly 15%, from a close of $92.23 per share on October 22, 2024, to close at $78.47 per share on October 23, 2024.

WHAT CAN I DO?

Enphase investors may, no later than February 11, 2025, ask the Court to serve as lead plaintiff in the class, through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent member of the class. Kessler Topaz Meltzer & Check, LLP encourages Enphase investors who have suffered significant losses to contact the company directly for more information.

WHO CAN BE A LEAD PLAINTIFF?

A lead plaintiff is a representative party acting on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or a small group of investors who have the greatest financial interest and who are also suitable and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to participate in any recovery is not affected by the decision whether or not to serve as lead plaintiff.

ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP

Kessler Topaz Meltzer & Check, LLP prosecutes class action lawsuits in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: protecting investors, consumers, employees and others from fraud, abuse, misconduct and negligence by companies and fiduciaries.

For more information about Kessler Topaz Meltzer & Check, LLP, visit www.ktmc.com.

CONTACT:

Kessler Topacio Meltzer & Check, LLP

Jonathan Naji, Esq.

280 King of Prussia Road

Radnor, Pennsylvania 19087

(484) 270-1453

info@ktmc.com

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