Faruqi & Faruqi LLP Securities Litigation Partner James (Josh) Wilson encourages investors who have suffered losses exceeding $100,000 in Enphase Energy (NASDAQ:) to contact him directly to discuss their options.
If you suffer losses exceeding $100,000 Phase energy Between April 25, 2023 and October 22, 2024 If you would like to discuss your legal rights, contact Farooqui & Farooqui Partner Josh Wilson live in 877-247-4292 or 212-983-9330 (ext. 1310).
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New York, New York–(Newsfile Corp. – December 25, 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 February 11, 2025 deadline For the role of lead plaintiff in a federal securities class action lawsuit filed against the Company.
Farooqui & Farooqui 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 founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated the federal securities laws by making false and/or misleading statements and/or failing to disclose that Defendants systematically overstated the Company's ability to maintain pricing levels and market share for its products. Microtransformers. in Europe in the face of competition from low-cost Chinese alternatives.
On April 25, 2023 when the company announced its financial results for the first quarter of 2023. Among other things, Enphase recorded a nearly 25% increase in European revenues year-on-year. During a quarterly investor earnings call held on the same day, defendant Badrinarayanan Kothandaraman, the company's president and CEO, noted that Enphase's “European business is growing rapidly,” with “sales of our microinverters in Europe reaching a record high” launch” in this quarter. When specifically asked about competition in Europe from Chinese manufacturers and the risk of margin erosion caused by price deflation from those competitors, defendant Raghuveer Belur, the company’s co-founder and the company’s senior vice president and president, denied The product executive, addressed these concerns, saying: “(c)ompetition is strong everywhere” and is “nothing new (in Europe),” while defendant Kothandaraman claimed that Enphase “doesn’t see any reduction in its prices.”
Then on October 26, 2023, the company reported a roughly 34% QoQ decline in European revenue in Q3 2023 due to “softening demand.” During an accompanying quarterly investor earnings call held on the same day, defendant Kothandaraman was adamant that the company would not adjust its pricing strategies, despite countervailing competitive market forces, stressing that “there is no broad pricing adjustment on our part.” .
In response to declining European revenues and defendant Kothandaraman's unwillingness to consider price adjustments, analysts at BofA Securities reiterated their weak rating on the shares and criticized the company for refusing to cut prices to pursue market share, as “competitive risks” in Europe persisted. .
On this news, Enphase's common stock price fell $14.09 per share, or approximately 15%, from a close of $96.18 per share on October 26, 2023, to close at $82.09 per share on October 27, 2023.
Finally, on October 22, 2024, the company announced its financial results for the third quarter of 2024 and revealed an approximately 15% quarter-on-quarter decline in European revenues due to “further decline in European demand.” During an accompanying quarterly investor earnings call held on the same day, defendant Kothandaraman was again asked whether Enphase, in light of the company's weakness in Europe, would change its pricing strategy. While he acknowledged that the company had at times made customer-specific price concessions, defendant Kothandaraman reiterated that “we are not underpricing anywhere,” despite the prevailing competitive headwinds.
In response to Enphase's continued weak 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 who are willing to sell at less than half of (Enphase's) level.”
On this news, Enphase's common stock price fell $13.76 per share, or approximately 15%, from a close of $92.23 per share on October 22, 2024, to close at $78.47 per share on October 23, 2024.
A court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class and is appropriate and typical for members of the class who direct and oversee litigation on behalf of the putative class. Any member of the putative class may ask the court to serve as lead plaintiff through counsel of their choice, or they may choose to do nothing and remain an absent member of the class. Your ability to participate in any recovery is not affected by the decision whether or not to serve as lead plaintiff.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Enhpase's conduct to contact the company, including whistleblowers, former employees, shareholders and others.
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Lawyer advertisement. The law firm responsible for this announcement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Past results do not guarantee or predict a similar result with respect to any future matter. We welcome the opportunity to discuss your specific case. All communications will be treated confidentially.
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