Shareholders Sue Enphase Energy Over Supply Chain and Solar Tax Credit Claims

A class action lawsuit was filed against Enphase Energy (ENPH) on February 17.

Plaintiffs -shareholders- in the federal securities class action allege that they acquired Enphase stock at artificially inflated prices between April 22, 2025 and October 28, 2025, known as the “Class Period.” They are now seeking compensation for financial losses incurred upon public revelation of the company’s alleged misconduct during that time. To learn whether you may be eligible for a recovery under this securities lawsuit, click here.

What Does Enphase Energy Do?

Enphase was founded in 2006. It is a global energy technology company, which in its own words, has “transformed the solar industry” by introducing its “microinverter technology.” According to Enphase, this technology transforms sunlight into a “safe, reliable and scalable” source of energy. The company also says that its intelligent microinverters are compatible with most solar panels, and that pairing them with Enphase’s “smart battery technology”  facilitates the creation of clean energy systems.

In all, Enphase says it has shipped approximately 86.4 million microinverters, and deployed more than 5.1 million Enphase-based systems in more than 160 countries. Enphase also says it has more than 6,000 installers and 2,872 employees globally.

Why are Shareholders Suing Enphase Energy?

The company and two of its senior officers (the “Individual Defendants”) are accused of deceiving investors by lying and withholding important information about Enphase’s business practices and prospects during the Class Period.

In particular, they are accused of omitting truthful information about the company’s ability to manage its channel inventory, and its ability to mitigate effects arising from the termination of the 25D Credit, from SEC filings and related material. By knowingly or recklessly doing so, they allegedly caused Enphase stock to trade at artificially inflated prices during the time in question.

The truth, according to shareholders, came out on October 28, 2025. That’s when the company reported its financial results for the third quarter of 2025 and held a related earnings call. In this context, Enphase said it expected 2025 to close on a weak note, with “elevated channel inventory resulting in lower battery storage shipments in the fourth quarter, and that the expiration of the 25D Credit would negatively impact revenues for the first quarter of 2026.”

Taking a Closer Look

As alleged, Enphase and/or the Individual Defendants repeatedly made false and misleading public statements throughout the Class Period.

During an earnings call held at the beginning of the Class Period, for instance, the Company’s CEO, an Individual Defendant, stated in pertinent part: ‘… we are moving quickly to realign our supply chain to minimize downside across a range of scenarios. While we cannot control the macroeconomic conditions, we can absolutely control our response.”

Next, during an earnings call on July 22, 2025, Enphase’s CEO said: “[a]s we exited Q2, our battery channel inventory was normal, while our microinverter channel inventory was slightly elevated.”

During the same call, the Company’s CFO, an Individual Defendant, stated in relevant part: “[w]e expect our revenue for Q3 to be within a range of $330 million to $370 million, which includes shipments of 190 to 210 megawatt hours of IQ Batteries.”

In response to an analyst’s query during the question-and-answer portion of the same call, Enphase’s CEO said: “We work with every one of these TPO customers. We work with every single one. And right now, we are in deep discussions with them because what we have is we know how to service long-tail installers. We have the relationships with the longtail installers. And if we can bring lease financing access to the long tail we can prevent a market erosion. So, that’s what we are aiming to do. And we are working with a lot of the TPOs.”

Finally, in an answer to another analyst’s question during the same call, the company’s CEO said: “The question on channel, we are completely transparent to you. It is — we are actually in very good shape in channel management.”

Actions You May Take

If you have purchased the company’s stock during the Class Period, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole. To learn more about your options, click here.

The deadline to file for lead plaintiff in this class action is April 20, 2026.