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SEI.US
id: 1553
Solaris Energy ($SEI) Fraudulent Acquisition and Insider Scheme Case
S.D. Texas
Court4:25-cv-01455
Case number07/09/2024
Class period Start03/17/2025
Class period End05/30/2025
Lead Plaintiff motion deadline- $SEI investors filed a claim against Solaris for misrepresenting the value and stability of its $323M acquisition of Mobile Energy Rentals (MER).
- After a short-seller report revealed MER had no employees, no track record, and was linked to a convicted felon, $SEI dropped 16.9% on March 17, 2025.
Case Details:
On July 9, 2024, Solaris Energy announced a $323 million acquisition of Mobile Energy Rentals (MER), promoting it as a leading mobile turbine power solutions provider with a diversified customer base and strong earnings. The company stated the deal would enhance its position in distributed energy infrastructure and projected robust growth in its new Power Solutions segment.
Solaris assured investors that MER had an experienced management team, $50 million in expected run-rate EBITDA, and a fully-utilized fleet supported by long-term contracts. However, on March 17, 2025, a report by Ningi Research revealed that MER had virtually no operating history, operated out of a condo, had no employees, and was heavily reliant on one customer for 96% of its revenue.
The report also uncovered that John Tuma, MER’s co-owner and current Solaris technical advisor, was a convicted felon in a prior $800 million turbine fraud scandal. Solaris failed to disclose Tuma’s background, the questionable origin of MER’s assets, and that the company had only recently acquired turbines through debt financing, which Solaris paid off as part of the acquisition.
Additionally, Solaris was accused of inflating short-term profitability by assigning its turbines an unrealistic 25-year depreciation schedule, despite industry peers using 8–12 years. Analysts estimated this tactic understated depreciation expenses by over 100%.
Following the revelations, $SEI fell 16.9%
Based on these events, $SEI investors filed a claim against Solaris Energy Infrastructure, accusing the company of the following:
- It misled investors by promoting a shell company as a strategic, revenue-generating acquisition.
- It concealed the background of a convicted felon who helped drive the deal and received millions in cash and stock.
Considering all the representations, investors believe Solaris overstated the value of the acquisition, manipulated accounting practices, and concealed material risks to support its stock price.
Case Status
Lead Plaintiff Appointment
Alleged Offence
Misleading Statements,
Fraud,
Insider Trading,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
03/17/2025
Filing date
03/28/2025
Lead Plaintiff Deadline
05/30/2025