Enphase investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, Enphase is a global energy technology company that delivers smart, easy-to-use solutions that manage solar generation, storage and communication on one intelligent platform. Enphase asserts that it revolutionized the solar industry with its microinverter technology, and that it produces a fully integrated solar-plus-storage solution.
The Class Period commences on February 26, 2019, when Enphase issued a press release on a Form 8-K with the SEC in which it announced Enphase’s financial results for the fourth quarter and year-ended 2018. In the press release, Enphase stated that for the fourth quarter of 2018 it had revenue of $92.3 million, an increase of 18% sequentially and an increase of 16% year-over-year. The press release further stated that Enphase’s non-GAAP gross margin was 30.7%, a decrease of 210 basis points from 32.8% in the third quarter. For the full year ended December 31, 2018, Enphase reported revenue of $316.159 million, with gross margins of 29.9%, up from $286.166 million and 19.6% for the year ended December 31, 2017.
The complaint alleges that, on June 17, 2020, analyst Prescience Point Capital Management (“Prescience Point”) published a report in which it wrote that “[a]t least $205.3m of ENPH’s reported FY19 US revenue is fabricated, and a significant portion of its international revenue is fabricated as well.” The report continued: “[m]ost, if not all, of the 2,080 Bps expansion in ENPH’s gross margin since Q2’17 is also fabricated,” and called on Enphase’s accountant, Deloitte, to “launch an in-depth investigation of EPNH’s accounting practices.” Prescience Point further called on “[r]egulatory and law enforcement agencies with subpoena power [to] launch a full investigation of the Company, its accounting, its disclosures and trading by insiders.”
Following this news, Enphase’s stock price fell by approximately 26% in one day, from its June 16, 2020 close of $52.76 per share to a June 17, 2020 close of $39.04 per share.
The complaint alleges that, throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) its revenues, both U.S. and international, were inflated; (2) Enphase engaged in improper deferred revenue accounting practices; (3) Enphase’s reported basis point expansion in gross margins was overstated; and (4) as a result of the foregoing, the defendants’ public statements were materially false and misleading at all relevant times.
If you are a member of the class described above, you may no later than August 17, 2020 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-844-887-9500 or 1-610-667-7706, or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the online form.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-844-887-9500 (toll free) or 1-610-667-7706
Or by e-mail at info@ktmc.com