Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors to Take Losses in Enphase Energy (NASDAQ
If you have purchased or acquired securities in Enhase energy Between April 25, 2023 and October 22, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi Partners Josh Wilson directly at 877-247-4292 or 212-983-9330 (ext. 1310).
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New York, New York–(NewsFile Corp. – January 25, 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 the February 11, 2025 deadline to seek the role of lead plaintiff in a securities lawsuit filed against the Company.
Faruqi & Faruqi 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 described below, the complaint alleges that the Company and its officers violated federal securities laws by making and/or failing to disclose false and/or misleading statements in Europe in the face of competition from low-cost Chinese alternatives.
On April 25, 2023, when the company announced its first quarter 2023 financial results. Among other things, Enphase reported a year-over-year increase in European sales of approximately 25%. During the accompanying quarterly investor results held on the same day “All-time high” in the quarter. When asked about competition in Europe from Chinese manufacturers and the risk of margin erosion caused by price deflation from these competitors, defendant Raghuveer dismissed Belur , a company co-founder and the company’s senior vice president and chief products officer, addressed such concerns, noting that “(c)Ocompetition is strong everywhere” and “nothing new (in Europe),” while defendant Kotandaraman claimed that Enphase is not seeing a “decline in (it’s) pricing.”
On October 26, 2023, the Company reported a decline in European quarterly sales in the third quarter of 2023 due to “demand funds” in the third quarter of 2023. During the investor’s quarterly earnings call held on the same day, defendant Kotandaraman was firm about this convinced that the company would not adjust its pricing strategies despite counteracting competitive market forces, emphasizing that “there is no broad price adjustment from us”.
In response to the decline in European revenues and defendant Kotandaraman’s unwillingness to accommodate adjustments.
On this news, the price of Enphase’s common stock decreased $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 .
Finally, on October 22, 2024, the company announced third quarter 2024 financial results and reported a quarterly quarterly decline in European revenues of approximately 15% due to “further easing in European demand.” During the investor’s quarterly earnings call held on the same day, defendant Kotandaraman was again asked whether Enphase would change its pricing strategy given the company’s weakness in Europe. While acknowledging that the company had occasionally made customer-specific price concessions, defendant Kotandaraman reiterated that “we do not compromise pricing anywhere” despite facing competitive headwinds.
In response to Enphase’s continued poor performance in Europe, Guggenheim downgraded ENPHASE stock from a neutral rating to a sell rating, stating that ENPHASE is “losing share to Chinese competitors willing to compete with less than half (Enphase) for sale”.
On this news, the price of Enphase’s common stock decreased $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 .
The lead plaintiff created by the court is the investor with the greatest financial interest in the relief sought by the class, which is appropriate and typical of the class members directing and overseeing the litigation on behalf of the putative class. Any member of the putative class may move the Court through counsel of their choice as lead plaintiff or may elect to do nothing and remain an absent class member. Your ability to participate in recovery will not be affected by the decision to serve or not as lead plaintiff.
Faruqi & Faruqi, LLP also encourages anyone with information about Enhpase’s conduct to contact the company, including whistleblowers, former employees, shareholders and others.
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