Enphase Energy, Inc. Class Action Lawsuit
- Company Name
- Enphase Energy, Inc.
- Stock Symbol
- Class Period
- February 26, 2019 to June 17, 2020
- Motion Deadline
- August 16, 2020
- Northern District of California
The Enphase Energy, Inc. class action lawsuit charges Enphase and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Enphase common stock between February 26, 2019 and June 17, 2020, inclusive (the “Class Period”). The Enphase class action lawsuit was commenced on June 17, 2020 in the Northern District of California and is captioned Hurst v Enphase Energy, Inc., No. 20-cv-04036.
Enphase is a global energy technology company that purportedly “deliver[s] smart, easy-to-use solutions that manage solar generation, storage and communication on one intelligent platform.”
The Enphase class action lawsuit alleges that Enphase misled investors as to its financial results, including, among other things, its revenues (both domestic and international), its base points expansion in gross margins, and its accounting practices – which led to inflated financial results. Specifically, according to the Enphase class action lawsuit, defendants misrepresented and/or failed to disclose to investors that: (1) Enphase’s revenues, both U.S. and international, were inflated; (2) Enphase engaged in improper deferred revenue accounting practices; (3) Enphase’s reported base points expansion in gross margin was overstated; and that (4) as a result of the foregoing, defendants’ public statements regarding Enphase’s financial results were materially false and misleading at all relevant times.
On June 17, 2020, analyst Prescience Point Capital Management published a report in which it stated that “we believe [Enphase]’s financial statements filed with the [U.S. Securities & Exchange Commission] are fiction. Based on our research, we estimate that at least $205.3m of [Enphase’s] reported US revenue in FY 2019 was fabricated. Based on statements provided by former [Enphase] employees and other solar industry participants, it appears that [Enphase] inflated its international revenue significantly as well. We also believe that most, if not all, of the enormous 2,080 Bps expansion in [Enphase]’s gross margin during [defendant Badrinarayanan] Kothandaraman’s tenure as CEO – from 18.4% in Q2 2017 to 39.2% in Q1 2020 – is fiction. We believe government bodies should investigate [Enphase], Deloitte should launch an in-depth investigation of [Enphase]’s accounting practices, and [Enphase’s] Board of Directors should establish an independent committee to examine the findings and analyses presented in this report.” On this news, the price of Enphase stock price fell 26%.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Enphase common shares during the Class Period to seek appointment as lead plaintiff in the Enphase class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the Enphase class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Enphase class action lawsuit. An investor’s ability to share in any potential future recovery of the Enphase class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Enphase class action lawsuit or have questions concerning your rights regarding the Enphase class action lawsuit, please provide your information here or contact counsel, J.C. Sanchez of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. Lead plaintiff motions for the Enphase securities class action lawsuit must be filed with the court no later than August 17, 2020.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.