NEW YORK, May 30, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of all persons or entities who purchased or otherwise acquired Enphase Energy, Inc. (“Enphase” or the “Company”) (NYSE: ENPH) securities between February 7, 2023 and April 25, 2023, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.
The Complaint in the lawsuit alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges that the Defendants provided investors with material information concerning Enphase’s expected revenue for the fiscal year 2023. The Complaint also alleges that Defendants’ statements included, among other things, Enphase’s continued ramp in higher margin IQ8 microinverters, roll-out of gen-3 battery technology, expansion into new markets thereby supporting Defendants’ decision to forecast revenue of $700 million to $740 million for the first quarter of 2023.
The Complaint further alleges that Defendants provided these overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning a decrease in battery shipments to Europe and California; a slowdown in battery deployment and adoption; a longer transition period with NEM 3.0 and slower output of inverters manufactured by the new US base manufacturing lines. According to the Complaint, this caused Plaintiff and other shareholders to purchase Enphase’s securities at artificially inflated prices.
The Complaint further alleges that the truth emerged on April 25, 2023 when Enphase issued a press release announcing its first quarter earnings. The Complaint also alleges that Defendants announced its revenue in the United States had decreased by approximately 9% attributing it to macroeconomic conditions. Additionally, the Complaint alleges that Defendants put out a weak second quarter outlook for 2023 where revenue was estimated to be within the range of $700 million to $750 million.
The Complaint further alleges investors and analysts reacted immediately to Enphase’s revelation and that the price of Enphase’s common stock declined dramatically. From a closing market price of $220.60 per share on April 25, 2023, Enphase’s stock price fell to $163.83 per share on April 26, 2023, a decline of nearly 26% in the span of just a single day.
Investors who purchased or otherwise acquired shares of Enphase should contact the Firm prior to the July 29, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
