Faruqi & Faruqi, LLP is investigating the claims on behalf of investor Enphase Energy Investing.com

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Faruqi & Faruqi, LLP securities litigation partner James (Josh) Wilson encourages investors who have suffered losses greater than $100,000 in Enphase Energy (NASDAQ: ) to contact him directly to discuss their options

If you have suffered losses greater than $100,000 in Enphase energy between April 25, 2023 and October 22, 2024 and want to discuss your legal rights, call a Faruqi & Faruqi partner Josh Wilson direct on 877-247-4292 or 212-983-9330 (ext. 1310).

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New York, New York–(Newsfile Corp. – December 30, 2024) – Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Enphase Energy, Inc . (“Enphase” or the “Company” ) (NASDAQ: ENPH) and reminds investors of The deadline is February 11, 2025 to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company.

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The company has recovered hundreds of millions of dollars for investors since its inception in 1995. See www.faruqilaw.com.

As set forth below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that the defendants systematically overstated the Company’s ability to maintain its price levels and market share for microinverter products in Europe in the face of competition from cheap Chinese alternatives.

On April 25, 2023, when the Company announced financial results for the first quarter of 2023. Among other things, Enphase reported an increase in revenue in Europe of approximately 25% compared to the previous year. During the company’s accompanying quarterly earnings call on the same day, defendant Badrinarayanan Kothandaraman, the Company’s president and chief executive officer, said Enphase’s “European business is growing rapidly,” with “sales of our microinverters in Europe.[ing] all-time high price” 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, denied such concerns, stating that “[c]competition is strong everywhere” and it is “nothing new [in Europe],” while defendant Kothandaraman claimed that Enphase “doesn’t see any decline [it’s] prices.”

Then, on October 26, 2023, the company reported an approximately 34% quarter-over-quarter decline in revenue in Europe in the third quarter of 2023 due to “reduced demand.” During the accompanying quarterly earnings call held on the same day, defendant Kothandaraman was adamant that the Company would not adjust its pricing strategies, despite competitive market forces, stressing that “there is no broad price adjustment from us.”

In response to declining European revenues and defendant Kothandaraman’s unwillingness to consider price adjustments, analysts at BofA Securities reiterated their downgrade on the stock and criticized the company for refusing to cut prices to gain market share, as there are “competitive risks” in Europe. .

Following this news, the price of Enphase common stock fell $14.09 per share, or nearly 15%, from a close of $96.18 per share on October 26, 2023, to $82.09 per share on October 27, 2023.

Finally, on October 22, 2024, the Company released its financial results for the third quarter of 2024 and disclosed an approximately 15% decline in revenue in Europe over the quarter due to a “further reduction in European demand.” During the accompanying quarterly earnings call with investors held on the same day, defendant Kothandaraman was again asked whether, in light of the Company’s weakness in Europe, Enphase would change its pricing strategy. While admitting that the company has occasionally made customer-specific price concessions, the accused Kothandaraman reiterated that “we are not lowering prices anywhere”, despite the prevailing competitive winds.

In response to Enphase’s continued poor performance in Europe, Guggenheim downgraded Enphase shares to a sell rating from a neutral rating and explained that Enphase is “losing share to Chinese competitors who are willing to sell for less than half [Enphase]level.”

Following this news, the price of Enphase common stock fell $13.76 per share, or nearly 15%, from a close of $92.23 per share on October 22, 2024, to $78.47 per share on October 23, 2024.

A court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class, who is adequate and typical of the class members and who directs and oversees the litigation on behalf of the putative class. Any putative class member may propose to the Court to serve as lead plaintiff through counsel of his or her choosing, or may choose to do nothing and remain an absent class member. Your ability to participate in any recovery is not affected by the decision whether or not you will be the lead plaintiff.

Faruqi & Faruqi, LLP also encourages anyone with information about Enhpase’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

Advertising of lawyers. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Past results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your specific case. All communications will be treated confidentially.

To view the original version of this press release, visit https://www.newsfilecorp.com/release/235542

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