Enphase Energy Investors Can Lead Class Action Suit
A law firm has announced an opportunity for investors who suffered substantial losses in Enphase Energy ($ENPH) to lead a class action lawsuit. The suit covers a period from April to October 2025, with a deadline of April 20, 2026, to file.
The class action lawsuit alleges that Enphase Energy made false or misleading statements to investors. Specifically, the suit claims the company overstated its ability to manage its channel inventory and misrepresented its capacity to handle the effects of the expiring Residential Clean Energy Credit. These alleged misrepresentations occurred between April 22 and October 28, 2025, according to the complaint filed in the U.S. District Court for the Northern District of California. The lawsuit names Enphase and some of its top executives as defendants, accusing them of violating the Securities Exchange Act of 1934. The central issue materialized on October 28, 2025, when Enphase announced its third-quarter financial results. In that announcement, the company disclosed expectations of elevated inventory, which would lead to lower battery storage shipments in the fourth quarter. Management also reported that the termination of the 25D tax credit for clean energy property would negatively impact revenues for the first quarter of 2026. Following this news, Enphase's stock price dropped $5.56 per share, a 15.15% decrease, to close at $31.14 on October 29, 2025.
