On March 20, 2026, Robbins LLP announced a class action lawsuit against Enphase Energy, Inc. (NASDAQ: ENPH), targeting shareholders who acquired securities between April 22, 2025, and October 28, 2025. The lawsuit stems from allegations that Enphase misled investors about its ability to manage its channel inventory, raising concerns about the company's financial integrity and operational prospects.

2. Allegations Against Enphase Energy

Robbins LLP has outlined several critical allegations in the complaint, asserting that Enphase failed to disclose significant information that misrepresented its operational capabilities:

Overstated Inventory Management: The lawsuit claims that Enphase overstated its ability to manage its channel inventory, which is crucial for maintaining a balanced supply chain and meeting customer demand.

Misrepresentation of Credit Program Impact: The company allegedly misrepresented its ability to mitigate the effects of the termination of the 25D Credit program. This program, which allowed homeowners to deduct 30% of the costs associated with clean energy property installations, was set to expire on December 31, 2025—much earlier than initially anticipated.

Inflated Financial Outlook: As a result of the above misrepresentations, Enphase is accused of overestimating its financial and operational prospects, leading to significant market reactions when the truth came to light.

3. The Market Reaction

The allegations reached a pivotal moment on October 28, 2025, when Enphase reported its third-quarter financial results. During this report, management indicated that the company expected a weak finish to 2025, citing elevated channel inventory levels that would likely result in decreased battery storage shipments in the fourth quarter. Furthermore, they warned that the expiration of the 25D Credit would negatively impact revenues for the first quarter of 2026.

Following this disclosure, Enphase's stock experienced a dramatic decline, plummeting by $5.56 per share, or 15.15%, and closing at $31.14 on October 29, 2025. This sharp decline highlighted the market's reaction to the company's deteriorating outlook, raising concerns among investors about their investments in Enphase.

4. Next Steps for Shareholders

As the class action progresses, shareholders who purchased Enphase securities during the specified period may be eligible to participate. Those interested in serving as lead plaintiffs must submit their documents to the court by April 20, 2026. The lead plaintiff acts on behalf of other shareholders in directing the litigation process.

Importantly, shareholders are not required to participate actively in the case to qualify for potential recovery. By choosing to remain absent, they can still be considered class members.

5. About Robbins LLP

Robbins LLP is recognized as a leader in shareholder rights litigation, striving to assist shareholders in recovering losses, enhancing corporate governance, and holding company executives accountable for any wrongdoing. Founded in 2002, the firm has built a reputation for its commitment to shareholder advocacy.

6. Conclusion

The class action lawsuit against Enphase Energy marks a significant moment for investors in the renewable energy sector, raising questions about corporate accountability and financial transparency. As this legal battle unfolds, stakeholders will be closely monitoring the developments and implications for Enphase's future in the rapidly evolving energy market.

Original press release