Enphase Energy, Inc. (ENPH) Investors: February 11, 2025 Securities Class Action Deadline
RADNOR, Pa.–(NewMediaWire)–January 4, 2025– The law firm of Kessler Topaz Meltzer & Check, LLP is notifying 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 that purchased or otherwise acquired Enphase common stock between April 25, 2023 and October 22, 2024, inclusive (the Class Period). This action, entitled Trustees of Local Social Security and Pension Funds 464A – Pension Fund v. Enphase Energy, Inc., et al. , subject no. 3:24-cv-09038, 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, petition the court to serve as lead plaintiff for the class.
CONTACT KESSLER TOPAZ MELTZER & CHECK, LLP:
If you have suffered Enphase losses, you can CLICK HERE or go to: https://www.ktmc.com/new-cases/enphase-energy-inc-class-action?utm_source=PR&utm_medium=link&utm_campaign=enph&mktm=r
You may also contact attorney Jonathan Naji, Esq. Kessler Topaz by calling (484) 270-1453 or emailing info@ktmc.com.
PROPER BEHAVIOR OF THE ACCUSED
Enphase develops, manufactures and markets solar microinverters that are primarily used in residential solar installations to convert the output of solar panels from direct current to alternating current (which can be fed into the electrical grid). As relevant here, Enphases’ international revenue has been growing in recent years as the company expands globally, particularly in Europe, with international revenue accounting for more than 35% of the company’s total revenue in 2023.
Prior to the start of the Class Period, Chinese solar companies significantly disrupted the European solar inverter market by selling or dumping their products at extremely low prices, a fact he pointed out Morgan Stanley (NYSE: ) Research as of April 24, 2023, when it reported that the value of Chinese inverter exports increased by 156% year-on-year internationally, with the Netherlands and Germany two of Enphasis’ key markets in Europe showing increases of 342 % compared to the previous year and 330%, respectively.
The teaching period begins on April 25, 2023, when the Company reports 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 accompanying quarterly earnings call with investors held on the same day, defendant Badrinarayanan Kothandaraman, the company’s president and chief executive officer, said that Enphases European business is growing rapidly, with sales of our microinverters in Europe.[ing] all-time record in a quarter. Asked specifically about competition from Chinese manufacturers in Europe and the risk of margin erosion caused by price cuts from those competitors, defendant Raghuveer Belur, the company’s co-founder and senior vice president and chief product officer, dismissed such concerns, stating that [c]competition is strong everywhere and is nothing new [in Europe]while the accused Kothandaraman claimed that Enphase does not see any decline [its] pricing.
Investors began to learn the truth about Enphases’ competitive challenges in Europe after the market closed on October 26, 2023, when 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 investor earnings call held that same day, Defendant Kothandaraman was adamant that the Company would not adjust its pricing strategies, despite competitive market forces, stressing that there was 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 continue with market share, as competitive risks existed 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.
During the remainder of the Class Period, Defendants continued to downplay competitive threats in the European solar inverter market and reassured investors that Enphases’ European pricing strategy was sound.
Investors learned the full truth about Enphases competitive positioning in Europe after the market closed on October 22, 2024, when the Company announced its third quarter 2024 financial results and disclosed an approximately 15% quarter-over-quarter decline in European revenue due to further softening in the European economy. demand. During a follow-up quarterly call with investors that 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, 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 from neutral to sell and explained that Enphase was losing share to Chinese competitors willing to sell for less than half [Enphase]from the 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.
WHAT CAN I DO?
Enphase Investors may, no later than February 11, 2025, request the Court to serve as lead plaintiff for the class, through Kessler Topaz Meltzer & Check, LLP or other counsel, or they may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Enphase investors who have suffered significant losses to contact the company directly for more information.
WHO CAN BE THE CHIEF PROSECUTOR?
The lead plaintiff is the representative party that acts on behalf of all class members in the conduct of the litigation. The lead plaintiff is usually an investor or a small group of investors who have the greatest financial interest and who are also appropriate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and those attorneys, if approved by the court, are lead or class counsel. The decision whether or not to be the lead plaintiff does not affect your ability to participate in the recovery.
About KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP litigates class actions in state and federal courts nationwide and around the world. The company has built a global reputation for excellence and has recovered billions of dollars from victims of fraud and other corporate wrongdoing. All of our work is driven by a common goal: to protect 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 Topaz Meltzer & Check, LLP
Jonathan Naji, Esq.
280 King of Prussia Road
Radnor, PA 19087
(484) 270-1453
info@ktmc.com
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