A class action lawsuit was filed against Solaris Energy Infrastructure (SEI) by Levi & Korsinsky on March 28, 2025. The plaintiffs (shareholders) alleged that they bought SOUN stock at artificially inflated prices between July 9, 2024 and March 17, 2025 (Class Period) and are now seeking compensation for their financial losses. Investors who bought Solaris Energy stock during that period can click here to learn about joining the lawsuit.
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Solaris Energy offers equipments used in distributed power generation as well as in the management of raw materials utilized in the completion of oil and natural gas wells.
The company’s inadequate and misleading disclosures related to the Mobile Energy Rentals (MER) acquisition are at the heart of the current complaint.
Solaris Energy’s Misleading Claims
According to the lawsuit, Solaris Energy and two of its senior officers (Individual Defendants) repeatedly made false and misleading public statements throughout the Class Period. Particularly, they are accused of omitting truthful information about SEI’s 2024 merger with Mobile Energy Rentals LLC from SEC filings and related material.
For instance, in a press release issued at the beginning of the Class Period, Solaris stated that MER’s founders and management team will be fully integrated into the company following the completion of the acquisition, which will help them leverage their “long and successful track record of managing power solutions.”
Further, in a quarterly report filed with the SEC on November 7, 2024, Solaris stated that MER operates throughout the U.S. and this acquisition provided the company an entry into the large and growing distributed power solutions market, enhancing its position as a mobile equipment and logistics solution provider to the oil and gas industry while diversifying its end-market exposure.
However, subsequent events (discussed below) revealed that Solaris had misled investors about the details related to the Mobile Energy Rentals acquisition, including the alleged lack of any experience in the mobile turbine leasing space and accusations against one of MER’s co-owners.
Plaintiffs’ Arguments
The plaintiffs maintain that the defendants deceived investors by lying and withholding critical information about Solaris’ business practices and prospects during the Class Period. Importantly, the defendants are accused of misleading investors regarding the company’s acquisition of Mobile Energy Rentals.
The matter became clear on March 17, 2025, when Morpheus Research published an investigative report that made many allegations against Solaris. For instance, the report alleged that MER was about a $2.5 million revenue equipment leasing business “based out of a condo with zero employees, no turbines, and no track record in the mobile turbine rental industry.”
Further, the report stated that one of MER’s co-owners, John Tuma, was a “convicted felon” for environmental crimes, who lied to the court on multiple occasions under oath. It added that Tuma was involved in a $800 million gas turbine scandal, which included accusations of bid rigging and corruption. SEI stock declined about 17% on March 17 in reaction to these allegations.
To conclude, the defendants allegedly misled investors about key details related to the acquisition of Mobile Energy Rentals. Given these issues, SEI stock has declined about 23% over the past three months, causing notable damage to shareholder returns.
