EquipmentShare.com (EQPT) Undisclosed Related-Party Transactions Case

Attorneys review the case details to decide whether to proceed with a class action.

S.D. New York

Court

1:26-cv-06288

Case number

01/23/2026

Class period Start

06/23/2026

Class period End

09/21/2026

Lead Plaintiff motion deadline

$EQPT stockholder filed a claim against EquipmentShare.com for touting that it was winding down related-party transactions with entities owned by its co-founders while concealing an extensive, undisclosed network of related entities that continued extracting significant fees from the company's "OWN" equipment-leasing program.
After a short-seller report revealed undisclosed related-party entities had collected at least $77 million in fees through a "web of 130 Schlacks-affiliated entities," $EQPT fell a combined 17.6% over two trading days, later trading as low as $16.06, more than 34.5% below its $24.50 IPO price.
$EQPT investors can join this case to be notified about potential recovery.
Case Details:

In its January 2026 IPO Registration Statement and throughout the Class Period, EquipmentShare, an equipment rental platform, disclosed certain related-party transactions with entities owned by co-founders Jabbok and Willy Schlacks under its "OWN Program," but stated it expected to "terminate or substantially reduce" these transactions prior to completing its offering, and represented there were no other undisclosed related-party dealings.

However, investors allege the company continued to participate in extensive additional related-party transactions it never disclosed, and had not meaningfully wound down its dealings with co-founder-controlled entities as represented.

Then, on June 24, 2026, Umibōzu Research published a report alleging that undisclosed entities affiliated with the Schlacks, including EZ Equipment Zone, Bevel Financial, and Armada Fleet Management, had collected at least $77 million in fees by funneling equipment financing, fleet aggregation, and origination business through EquipmentShare's OWN Program, and that these entities were part of a broader network of 130 Schlacks-affiliated companies. 

On this news, $EQPT fell 6.6%, closing at $22.30, then fell a further 11.7% the next day to close at $19.69. By the time the lawsuit was filed, the stock had traded as low as $16.06, a decline of more than 34.5% from its IPO price.

Based on these events, $EQPT investors filed a claim against EquipmentShare.com, alleging the company:
It falsely represented that related-party transactions with co-founder-controlled entities were being wound down.
It hid an extensive network of undisclosed related-party entities extracting fees through its OWN Program.
It caused investor losses when the true scope of these related-party dealings was revealed.
Investors argue EquipmentShare.com misled the market about the extent of its related-party dealings, causing losses when the true scope of self-dealing was exposed.

Case Type

US Securities Class Action

Case Status

Attorney Investigation

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Fraud,

Failure to Disclose

Suspected Party

Directors,

Management,

Investment Bank

Security Type

Stocks

Trade Direction

Long

Shock Event Date

06/24/2026

Filing date

07/23/2026

Lead Plaintiff Deadline

09/21/2026