Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired Enphase Energy, Inc. (“Enphase”) (NASDAQ: ENPH) common stock between April 25, 2023 and October 22, 2024, inclusive (the “Class Period”).
The Class Period begins on April 25, 2023, when the company announced its first quarter 2023 financial results. Among other things, Enphase reported an approximately 25% year-over-year increase in European revenue. During the accompanying quarterly investor earnings call held that same day, Defendant Badrinarayanan Kothandaraman, the company’s President and Chief Executive Officer, touted that Enphase’s “European business is growing rapidly,” with “sell-through of our microinverters in Europe reach[ing] an all time high” in the quarter. When asked specifically about competition in Europe from Chinese manufacturers and the risk of margin erosion caused by price deflation from those competitors, Defendant Raghuveer Belur, a Company co-founder and the Company’s Senior Vice President and Chief Products Officer, dismissed such concerns, stating that “[c]ompetition is strong everywhere” and is “nothing new [in Europe],” while Defendant Kothandaraman claimed that Enphase does not “see any drop in [it’s] pricing.”
Investors fully learned the truth about Enphase’s competitive positioning in Europe after the market closed on October 22, 2024, when the company announced its third quarter 2024 financial results and revealed an approximately 15% quarter-over-quarter decline in European revenue due to “further softening in European demand.” During the accompanying quarterly investor earnings call held that same day, Defendant Kothandaraman was again asked whether, in light of the company’s weakness in Europe, Enphase would alter its pricing strategy. While he acknowledged that the company had occasionally made customer-specific price concessions, Defendant Kothandaraman reiterated that “we are not dropping pricing anywhere,” despite prevailing competitive headwinds.
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material facts about the company’s business, operations, and prospects. Specifically, Defendants misrepresented and/or failed to disclose that: (1) Enphase’s European business was experiencing severe structural problems due to market saturation, failure to penetrate new markets, and competition from low-cost Chinese alternatives; (2) issues with customer service, installation, and connectivity were causing Enphase to lose business; and (3) as a result of the foregoing, Defendants’ statements about the company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis at all relevant times.
Current Status of Case:
On December 12, 2025, Defendants filed a Motion to Dismiss the Amended Complaint. The Motion is currently being briefed by the parties. This action is ongoing.
For more information on the case and the Motion to Dismiss, please visit our website at https://www.ktmc.com/featured-case/enphase-energy-inc.
If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; 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 form as promptly as possible.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP (KTMC) is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. KTMC has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including The National Law Journal’s Plaintiff’s Hot List and Trailblazers in Plaintiffs' Law, BTI Consulting Group’s Honor Roll of Most Feared Law Firms, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers, and Law360’s Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California. KTMC has recovered over $25 billion for our clients and the classes they represent.