RADNOR, Pa., July 01, 2020 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP reminds Enphase Energy, Inc. (NASDAQ: ENPH) (“Enphase”) investors that a securities fraud class action lawsuit has been filed in the United States District Court for the Northern District of California against Enphase on behalf of those who purchased or otherwise acquired Enphase common stock between February 26, 2019 and June 17, 2020, inclusive (the “Class Period”).
Important Deadline Reminder: Investors who purchased or otherwise acquired Enphase common stock during the Class Period may, no later than August 17, 2020, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation please click https://www.ktmc.com/enphase-energy-inc-class-action?utm_source=PR&utm_medium=link&utm_campaign=enphase.
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 wish to discuss this securities fraud class action lawsuit or have any questions concerning this notice or your rights or interests with respect to this litigation, please contact Kessler Topaz Meltzer & Check (James Maro, Jr., Esq. or Adrienne Bell, Esq.) at (844) 877-9500 (toll free) or (610) 667–7706, or via e-mail at email@example.com.
Enphase investors may, no later than August 17, 2020, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a 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 affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.