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Faruqi & Faruqi, LLP Securities Litigation Partners James (Josh) Wilson Urges Investors Who Lost Over $100,000 in Enphase Energy (NASDAQ: ) to Contact Him Directly to Discuss Their Options
If you have a loss of more than $100,000 per Enphase Energy between April 25, 2023 and October 22, 2024 and you would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson live to 877-247-4292 or 212-983-9330 (Ext. 1310).
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New York, New York–(Newsfile Corp. – January 18, 2025) – 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 seeking the role of lead plaintiff in a federal class action against the Company.
Faruqi & Faruqi is a leading national security law firm with offices in New York, Pennsylvania, California and Georgia. The firm has raised hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As described 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 exceeded the ability to The company to maintain its price level and market share for microinverter products. Europe does not face competition from cheaper, Chinese alternatives.
On April 25, 2023, the Company announced its financial results for the first quarter of 2023. Among other things, Enphase reported a nearly 25% year-over-year increase in European revenue. During a quarterly earnings call for investors held that same day, Defendant Badrinarayanan Kothandaraman, the Company’s President and Chief Executive Officer, suggested that Enphase’s “European business” is growing rapidly, “with sales of our European microinverters reaching an all-time high” in the quarter. When asked specifically about European competition from Chinese manufacturers and the risk of network erosion caused by price cuts from those competitors, Defendant Raghuveer Belur, co-founder of the Company and The company’s Senior Vice President and Chief Product Officer dismissed such concerns, saying “(c) competition is fierce everywhere” and “there is nothing new (Europe),” while Defendant Kothandaraman said Enphase saw nothing. lower the prices.”
Then on October 26, 2023, the Company reported a nearly 34% quarter-on-quarter decline in European revenue for the third quarter of 2023 due to “softening demand.” During the quarterly earnings call held on the same day, Defendant Kothandaraman had confirmed that the Company will not change its pricing strategies, despite the competitive market, stressing that “when there is a wide-ranging price adjustment from us.”
In response to the decline in European currency and Defendant Kothandaraman’s unwillingness to consider price changes, analysts at BofA Securities reiterated their underperform rating on the stock and criticized the Company for refusing to lower prices to pursue market share, as “competitive risks” endure in Europe. .
In this news, the price of Enphase common stock decreased by $14.09 per share, or approximately 15%, from $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-over-quarter decrease in European revenue due to “further easing of demand of Europe.” During the corresponding quarterly investor earnings call held the same day, Defendant Kothandaraman was asked again whether, due to the Company’s weakness in Europe, Enphase would change its pricing strategy. While admitting that the Company sometimes made special customer price deals, Defendant Kothandaraman also said that “we don’t cut prices anywhere,” despite the competitive atmosphere. .
In response to Enphase’s continued poor performance in Europe, Guggenheim downgraded Enphase’s stock to a sell rating from neutral and stated that Enphase was “losing share to competitors the Chinese are willing to sell less than half the (Enphase) level.”
In this news, the price of Enphase common stock decreased by $13.76 per share, or about 15%, from $92.23 per share on October 22, 2024, to close at $78.47 per share on October 23 2024.
The lead plaintiff appointed by the court is the investor with the greatest financial interest in the relief sought by a reasonable and common class of class members conducting and overseeing the case on behalf of the putative class. Any member of the arbitration panel may have the Court act as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent panel member. Your ability to participate in any recovery is not affected by the decision to serve as the lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information about Enhpase’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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