Overview of Recent Class Action Lawsuit Against Enphase Energy, Inc. and Its Implications

Class Action Lawsuit Filed Against Enphase Energy

On February 19, 2026, Pomerantz LLP announced the initiation of a class action lawsuit against Enphase Energy, Inc. and certain of its executive officers. This lawsuit, which has been filed in the United States District Court for the Northern District of California, concerns allegations that Enphase violated federal securities laws during a specific time frame.

Background of the Lawsuit

This class action is primarily for individuals and entities that purchased or otherwise acquired securities of Enphase between April 22, 2025, and October 28, 2025. The plaintiff seeks to reclaim damages stemming from these alleged violations. Specifically, those who have been affected are encouraged to contact Pomerantz LLP before the deadline on April 20, 2026, to be appointed as Lead Plaintiff.

The lawsuit emerged against the backdrop of Enphase's operations as a prominent global energy technology provider, which focuses on solar generation and energy storage solutions. To enable its growth, the company collaborates with solar financing partners, promoting third-party ownership models such as leases or power purchase agreements.

Allegations of Misrepresentation

The allegations detail that Enphase made several misleading assertions concerning its business practices and market prospects. Key claims include potential overstatements about the company’s ability to manage channel inventory and the anticipated effects of the termination of the Residential Clean Energy Credit. Furthermore, the lawsuit suggests that these false claims led to inflated financial and operational expectations that ultimately proved unfounded.

Particularly, during the class period, Enphase had provided guidance that suggested stable growth and robust demand. However, the announcement of the expiration of the Residential Clean Energy Credit by former President Donald Trump on July 4, 2025, revealed a shift in the market landscape. This change would significantly impact consumers' purchasing behavior concerning clean energy products, including those offered by Enphase.

Market Reactions and Financial Impacts

On October 28, 2025, Enphase released its financial results for the third quarter. The management noted concerns about elevated channel inventories and decreasing battery storage shipments, which would lead to weak financial closure for 2025. The expiration of the 25D Credit was further acknowledged as a catalyst for expected revenue decline in early 2026. Following this news, Enphase’s stock experienced a dramatic decline, dropping by over 15% to close at $31.14 on October 29, 2025.

Legal Firm Background

Pomerantz LLP is recognized as a leading firm in corporate, securities, and antitrust litigation and has a rich history of advocating for victims of securities fraud. Founded by Abraham L. Pomerantz, the firm has pioneered many securities class actions and has successfully secured significant recoveries for class members over the years. They continue their commitment to justice for investors who have suffered losses due to corporate misconduct.

In conclusion, the ongoing class action lawsuit raises critical questions about corporate governance within Enphase Energy and the potential ramifications for investors who believed in the company's stability. For potential claimants and interested parties, the timeline for joining the lawsuit is set for April 20, 2026, and it remains to be seen how the situation will develop in the coming months.