Enphase Energy, Inc.

This securities fraud class action arises out of misstatements and omissions made by a set of Enphase senior executives (together, “Defendants”) about the Company’s revenue growth and competitive position in Europe, a key market for the Company’s expansion and a critical driver of its valuation. 

As is alleged in the First Amended Complaint, Enphase, a company that designs, manufactures, and sells microinverters used mostly in residential solar systems, began to experience a decline in its U.S. business beginning in early 2023, and as a result turned its attention to Europe to maintain its growth narrative and stock price. However, unbeknownst to investors, Enphase’s European business had severe structural problems, including that: (i) the residential solar market in key European countries had become saturated; (ii) Enphase was losing business to Chinese manufacturers selling comparable products at 50% lower prices; and (iii) Enphase’s products suffered from systemic issues, such as complicated installations, communication disruptions, and ineffective customer service. 

Given these structural problems, Defendants were aware by early 2023 that demand for Enphase’s microinverters had begun to decline in key European markets. This decline persisted, and in fact worsened, throughout 2023 and into 2024. Yet despite this knowledge, Defendants falsely assured investors throughout the Class Period that Enphase’s European business was thriving and that any weakness in the market was temporary and due to macroeconomic factors affecting all companies that would be resolved in the near-term.

Investors began to learn the relevant truth of Defendants’ misrepresentations and omissions of material fact on October 26, 2023, when Enphase disclosed that its revenues in Europe had declined approximately 34% compared to 2Q 2023. Defendants, however, again reassured the market that these problems were temporary and that Enphase remained “very bullish about Europe.” As such, it wasn’t until nearly a year later, on October 22, 2024, that the relevant truth was more fully revealed when Enphase reported another quarterly decline in European revenues and confirmed that the Company’s problems in the region were the result of more than just short-term macroeconomic factors.

On November 6, 2025, Plaintiff filed a 102-page complaint on behalf of a putative class of investors alleging that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Defendants’ deadline to move to dismiss or answer the First Amended Complaint is December 12, 2025.