SEI CLASS ACTION NOTICE: The Law Offices of Frank R. Cruz Files Securities Fraud Lawsuit Against Solaris Energy Infrastructure, Inc.
The Law Offices of Frank R. Cruz announces that it has filed a class action lawsuit in the United States District Court for the Southern District of Texas, captioned Pirello v. Solaris Energy Infrastructure, Inc., et al., Case No. 25-cv-01455, on behalf of persons and entities that purchased or otherwise acquired Solaris Energy Infrastructure, Inc. ('Solaris' or the 'Company') (NYSE: SEI) securities between July 9, 2024 and March 17, 2025, inclusive (the 'Class Period'). Plaintiff pursues claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the 'Exchange Act').
Investors are hereby notified that they have until to move the Court to serve as lead plaintiff in this action.
What Happened?
On July 9, 2024, Solaris announced that it has entered into an agreement to acquire Mobile Energy Rentals LLC ('MER'). Solaris completed the MER acquisition on September 11, 2024.
On March 17, 2025, Morpheus Research published an investigative report alleging, among other things, that MER had been '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.' The report revealed that one of MER's co-owners, John Tuma ('Tuma') was in fact, a 'convicted felon' for 'environmental crimes and lying to the court 'on multiple occasions under oath'' and was involved in a '$800 million gas turbine scandal… that included allegations of bid rigging [and] corruption.' Despite being 'nothing more than a small, local switchgear rental business at the end of 2023' MER was 'seemingly transformed throughout the first half of 2024 – just months before it was acquired by Solaris' immediately after Tuma joined the Company. The report then described how, in that period, MER had acquired substantially all of its turbines, primarily financed through the $71 million in debt that Solaris would later pay in the Acquisition. Contrary to Solaris's claims 'that MER had a 'contracted and diversified earnings stream[,]'' in fact, 'that 96% of its Power Solutions revenue was derived from a single customer[.]'
On this news, Solaris' stock price fell $4.15, or 16.9%, to close at $20.46 per share on March 17, 2025, on unusually heavy trading volume.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) MER had little to no corporate history in the mobile turbine leasing space; (2) MER did not have a diversified earnings stream; (3) MER's co-owner was a convicted felon associated with multiple allegations of turbine-related fraud; (4) as a result, Solaris overstated the commercial prospects posed by the Acquisition; (5) Solaris inflated profitability metrics by failing to properly depreciate its turbines; and (6) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Contact Us To Participate or Learn More:
If you purchased Solaris securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please click HERE or contact us at:
2121 Avenue of the Stars, Suite 800
Telephone: 310-914-5007
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
CONTACT: Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Telephone: 310-914-5007
SOURCE: The Law Offices of Frank R. Cruz
Copyright Business Wire 2025.
PUB: 03/31/2025 08:45 AM/DISC: 03/31/2025 08:47 AM
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