RADNOR, PA – (NewMediaWire) – December 21, 2024 – The law firm of Kessler Topaz Meltzer & Check, LLP has informed investors that the company 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 acquired Enphase common stock between April 25, 2023 and October September 22, 2024, inclusive (the “Class Period”). The action is named Trustees of Local Welfare and Pension Funds 464A – Pension Fund v. Enphase Energy, Inc., et al. , Case No. 3:24-cv-09038-JST, was filed in the U.S. District Court for the Northern District of California.
IMPORTANT DEADLINE REMINDER: Investors who purchased or otherwise acquired shares of Enphase common stock during the Class Period may, no later than February 11, 2025, move the court to serve as lead plaintiff for the class.
Contact KESSLER TOPAZ MELTZER & CHECK, LLP:
If you have 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 Nagy, Esq. Kessler Topaz by calling (484) 270-1453 or via email at info@ktmc.com.
Defendants' misconduct
Enphase develops, manufactures and sells solar microinverters, which are primarily used in residential solar installations to convert solar panel outputs from direct current to alternating current (which can be transmitted to the power grid). As relevant here, Enphases' international revenue has seen growth in recent years as the company expands globally, particularly in Europe, where international revenue represents more than 35% of the company's total revenue in 2023.
Before the start of the quarterly 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 conducted on 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 Enphases' key markets in Europe – showing year-on-year increases of 342% and 330%, respectively.
The class period begins on April 25, 2023, when the company reports its financial results for the first quarter of 2023. Among other things, Enphase reported an approximately 25% increase in European revenues year-over-year. During an accompanying quarterly investor earnings call held on the same day, Defendant Badrinarayanan Kothandaraman, the Company's President and CEO, noted that Enphases' European business is growing rapidly, with sales of our microinverters in Europe reaching an all-time high in the quarter. When asked specifically 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 chief product officer, dismissed these concerns, saying: (c) competition Strong everywhere and nothing new (in Europe), while defendant Kothandaraman claimed that Enphase does not see any decline in its prices.
Investors began to learn the truth about Enphases' competitive challenges in Europe after the market closed on October 26, 2023, when the company reported a roughly 34% quarter-on-quarter decline in European revenue in the third quarter of 2023 due to slumping 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, emphasizing that there was no widespread 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.
Throughout the remainder of the class, the defendants continued to downplay competitive threats in the European solar inverter market and reassured investors that Enphases' European pricing strategy was sound.
Investors fully learned the truth about Enphases' competitive position in Europe after the market closed on October 22, 2024, when the company announced its financial results for the third quarter of 2024 and revealed a roughly 15% quarter-on-quarter decline in European revenues due to a 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 asserted that we would not lower prices anywhere, despite the prevailing competitive headwinds.
In response to Enphases' 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 willing to sell at less than half the level (Enphase). 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.
what can i do?
Enphase investors may, no later than February 11, 2025, move the court to serve as lead plaintiff for the class, through Kessler Topaz Meltzer & Check, LLP or other counsel, or they may elect to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Enphase investors who have incurred significant losses to contact the company directly for further information.
Who can be the lead plaintiff?
A lead plaintiff is a representative party acting on behalf of all class members in directing the lawsuit. The lead plaintiff is usually the investor or a small group of investors who have the largest financial interest and who are also considered appropriate and typical of the proposed class of investors. The lead plaintiff selects an attorney to represent the lead plaintiff and the class and those attorneys, if approved by the court, are the lead attorneys or the class. Your ability to participate in any recovery is not affected by the decision of whether or not to serve as lead plaintiff.
About Kessler Topaz Meltzer & Czech LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts across the country and around the world. The company has earned 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: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by corporations and credit institutions.
For more information about Kessler Topaz Meltzer & Czech LLP, please visit www.ktmc.com.
communication:
Kessler Topaz Meltzer & Czech, LLP
Jonathan Nagy, Esq.
280 King of Prussia Road
Radnor, Pennsylvania 19087
(484) 270-1453
info@ktmc.com
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