RADNOR, PA – (NewMediaWire) – December 21, 2024 – The law firm of Kessler Topaz Meltzer & Check, LLP informed investors that the firm has filed a securities fraud class action suit against Enphase Energy, Inc. (NASDAQ: NASDAQ:) (Enphase or the Company) on behalf of all persons and businesses that purchased or received Enphase common stock between April 25, 2023, and October 22, 2024, inclusive (the Class Period). The action, titled Welfare Trusts 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 District of California.
Important Final Reminder: Investors who purchased or received Enphase common stock during the Class Class may, no later than February 11, 2025, move the Court to act as the lead plaintiff in the class.
CONTACT KESSLER TOPAZ MELTZER & HOLLA, LLP:
If you have experienced an Enphase loss, PLEASE 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 contact attorney Jonathan Naji, Esq. of Kessler Topaz by calling (484) 270-1453 or by email at info@ktmc.com.
CONDUCT OF PLAINTIFFS
Enphase develops, manufactures, and markets solar microinverters, which are used primarily in residential solar installations to convert solar panel output from direct current to alternating current (which can be transmitted to the power grid). As is 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 by 2023.
Before the start of the Class Period, Chinese solar companies were seriously disrupting the European solar inverter market by selling or disposing of their products at very low prices, a fact emphasized by. Morgan Stanley (NYSE:) Research on April 24, 2023, when it was reported that the value of Chinese inverter exports increased by 156% year-on-year internationally, with the Netherlands and Germany, two of Enphases' main markets in Europe, showing a year-on-year increase of 342% and 330%, respectively.
The Class Period begins on April 25, 2023, when the Company announces its results for the first quarter of 2023. Among other things, Enphase reported a 25% year-over-year increase in European revenue. During the quarterly investor earnings call held the same day, Defendant Badrinarayanan Kothandaraman, Company President and Chief Executive Officer, stated that Enphases' European business is growing rapidly, with sales of our microinverters in Europe reaching an all-time high. in a quarter. When asked specifically about competition in Europe from Chinese manufacturers and the risk of margin erosion caused by lower prices from competitors, Defendant Raghuveer Belur, the Company's founder and the Company's Senior Vice President and Chief Product Officer, dismissed that concern, stating that (c) competition is strong everywhere and it's not new (in Europe), while Defendant Kothandaraman says Enphase doesn't see any degradation (in) prices.
Investors began to learn the truth about Enphases competitive challenges in Europe after sales closed on October 26, 2023, when the Company reported a nearly 34% decline in European revenue in the third quarter of 2023 due to soft demand. . During the investor's quarterly earnings call held the same day, Defendant Kothandaraman maintained that the Company will not adjust its pricing plans, regardless of competitive market forces, insisting that there is no comprehensive adjustment from us.
In response to the decline in European revenues and the Accused Kothandaramans unwillingness to consider price adjustments, analysts at BofA Securities reiterated their underperform rating on the stock and criticized the Company for refusing to cut prices in order to pursue market share, as competitive risks persist in Europe. On this news, the price of Enphase common stock fell $14.09 per share, or almost 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 reassured investors that Enphases European pricing strategy made sense.
Investors learned the full truth about Enphases' competitiveness in the European market after sales closed on October 22, 2024, when the Company announced its third quarter 2024 results and revealed a nearly 15% quarter-over-quarter decline in European revenue. for more softness. in European demand. During a quarterly investor earnings call held the same day, Defendant Kothandaraman was again asked if, given the Company's weakness in Europe, Enphase could change its pricing strategy. While admitting that the Company sometimes makes special price concessions to the customer, Defendant Kothandaraman reiterated that we do not lower prices anywhere, regardless of the competition.
In response to Enphases continued poor performance in Europe, Guggenheim reduced Enphase's stock to a sales price from a neutral level and stated that Enphase is losing share to Chinese competitors who are willing to sell at less than half (Enphase) s. On this news, the price of Enphase common stock fell $13.76 per share, or almost 15%, from the 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 act as the lead plaintiff in the class, through Kessler Topaz Meltzer & Check, LLP or other counsel, or they may choose to do nothing and remain a non-class member. Kessler Topaz Meltzer & Khangela, LLP encourages Enphase investors who have suffered significant losses to contact the firm directly for more information.
WHO CAN BE THE LEAD PLAINTIFF?
The lead plaintiff is the representative party acting on behalf of all class members in the management of the lawsuit. The lead plaintiff is usually an investor or a small group of investors who have a substantial financial interest and who are sufficient and similar to 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 share in any recovery is not affected by the decision whether or not to act as the lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & REVIEW, LLP
Kessler Topaz Meltzer & Khangela, LLP prosecutes class actions 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 from victims of fraud and other corporate misconduct. All of our work is driven by the same goal: to protect investors, customers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries.
For more information about Kessler Topaz Meltzer & Khangela, LLP please visit www.ktmc.com.
CONTACT:
Kessler Topaz Meltzer & Search, LLP
Jonathan Naji, Esq.
280 King of Prussia Road
Radnor, PA 19087
(484) 270-1453
info@ktmc.com
It may be considered a marketing attorney in certain areas. Past results do not guarantee future results.
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