Faruqi & Faruqi, LLP investigates claims on behalf of Enphase Energy investors By Investing.com

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Over $100,000 In Enphase Energy (NASDAQ:) To Contact Him Directly To Discuss Their Options

If you lost more than $100,000 in Fill the Power between April 25, 2023 and October 22, 2024 and would like to discuss your legal rights, call a Faruqi & Faruqi partner Josh Wilson directly of 877-247-4292 or 212-983-9330 (Ext. 1310).

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New York, New York–(Newsfile Corp. – January 4, 2025) – Faruqi & Faruqi, LLP, a leading 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 securities class action filed against the Company.

Faruqi & Faruqi is a leading national security law firm with offices in New York, Pennsylvania, California and Georgia. The company has returned hundreds of millions of dollars to investors since it was founded in 1995. Check out 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 by failing to disclose that the defendants systematically overstated the Company’s ability to maintain price levels and market share for microinverter products. In Europe where there is competition from the cheapest, Chinese methods.

On April 25, 2023, when the Company announces 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 the accompanying quarterly earnings call to investors the same day, Defendant Badrinarayanan Kothandaraman, the Company’s President and Chief Executive Officer, stated that “Enphase’s European business is growing rapidly,” with “sales of our microinverters in Europe.[ing] all-time high” in the segment. When asked specifically about competition in Europe from Chinese manufacturers and the risk of margin erosion caused by competitors’ price cuts, Defendant Raghuveer Belur, the Company’s founder and the Company’s Senior Vice President. Products Officer, dismissed those concerns, saying “[c]ompetition is strong everywhere” and “it’s nothing new [in Europe],” while Defendant Kothandaraman said Enphase “does not see any intrusion [it’s] values.”

Then on October 26, 2023, the Company reported a nearly 34% quarter-over-quarter decline in European revenue for the third quarter of 2023 due to “softer demand.” During the company’s quarterly earnings call on the same day, Defendant Kothandaraman maintained that the Company will not adjust its pricing strategy, despite the competitive market, insisting that “there is no price adjustment based on us.”

In response to declining European revenues and Defendant Kothandaraman’s reluctance to consider price adjustments, BofA Securities analysts reiterated their undervaluation of the stock and criticized the Company for refusing to lower prices to pursue market share, as “competitive risks” are being tolerated in Europe. .

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 a close of $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 estimated 15% quarter-over-quarter decline due to “further softening of European demand.” During the same day’s quarterly earnings call, Defendant Kothandaraman was again asked whether, given the Company’s weakness in Europe, Enphase would change its pricing strategy. While admitting that the Company occasionally negotiated customer-specific pricing, Defendant Kothandaraman reiterated that “we are not lowering prices anywhere,” despite the competition.

In response to Enphase’s continued poor 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 less than half. [Enphase]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 a close of $78.47 per share on October 23, 2024. .

A court-appointed lead plaintiff is an investor with a significant financial interest in the relief sought by the class that is adequate and common to class members directing and presiding over litigation on behalf of the class action. Any member of the forbearance class may move the Court to act as lead plaintiff through counsel of their own choosing, or may choose to do nothing and remain a non-class 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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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/236021