Solaris Energy Infrastructure, Inc. (SEI)  Securities Class Action Lawsuit Update [April 30, 2025]

Introduction to SEI Lawsuit

This is a shareholder alert about the Solaris Energy Infrastructure, Inc. (SEI) class action lawsuit filed on April 4, 2025. The class action lawsuit was brought on behalf of all persons and entities who purchased securities of Solaris between July 9, 2024, and March 17, 2025, and seeks to recover losses of shareholders who were adversely affected by alleged securities fraud during the aforementioned Class Period. Investors may be entitled to compensation through a contingency fee arrangement without out of pocket fees. If you purchased Canopy Growth securities during the Class Period, you may be entitled to compensation through a contingency fee arrangement. Shareholders have until May 27, 2025 to file submissions as lead plaintiff. 

Solaris Energy provides equipment used in the oil and gas industry. In July 2024, it announced the acquisition of Mobile Energy Rentals LLC (“MER”). It finalized the MER acquisition in September 2024 and boasted about the great value MER brought to Solaris.   

However, a March 2025 report by Morpheus Research undermined Solaris’ claims and made multiple allegations about MER. The Morpheus Report alleged MER had “no employees, no turbines, and no track record in the mobile turbine rental industry” and MER's co-owner is a convicted conman. The Report further alleged SEI used accounting sleight-of-hand to inflate its assets. 

Investors reacted negatively to this news and Solaris’ stock price dropped 16.9% in one day.  

Solaris Energy Infrastructure, Inc (SEI) Lawsuit Case Details 

Pirello v. Solaris Energy Infrastructure, Inc. Case No. 4:25-cv-01455 

U.S. District Court, Southern District of Texas 

Complained filed against Solaris Energy on March 28, 2025 

Solaris Energy Infrastructure, Inc (SEI) Company Profile 

Solaris provides equipment used in the completion of oil and natural gas wells in the United States. It has two business segments: “power solutions” and “logistics solutions.” Power solutions makes up about 80% of the Company's business.   

In July 2024, Solaris announced its acquisition of Mobile Energy Rentals LLC (“MER”). Solaris described MER as a “premier provider of distributed power solutions serving the energy and commercial & industrial end-markets” primarily in the leasing of “natural-gas powered mobile turbines.”

Solaris Energy Infrastructure, Inc (SEI) Securities Lawsuit Class Period 

July 9, 2024 to March 17, 2025, inclusive. 

Individuals who purchased Solaris energy securities during the class period might be eligible to join the class action lawsuit. 

Solaris Energy Infrastructure, Inc (SEI) Lawsuit Allegations 

On July 9, 2024, Solaris issued a press release announcing its acquisition agreement for MER and its Q2-24 financial updates. The press release touted MER’s “compelling valuation” and proven “track-record” calling it a “premier provider of distributed power solutions.”  

In September 2024, SEI completed the MER acquisition, paying about $60 million in cash, around 16.5 million shares, and absorbing around $71 million in MER’s debt.     

In February 2025, SEI announced its Q4-24 financial statement. In that statement, the Company boasted about its “Power Solutions” segment, powered by its MER acquisition. On its March 2025 filing with the SEC, SEI claimed the fair value for the total purchase was $323.1 million, including $91 million in goodwill.    

In the Complaint filed against Solaris Energy, Plaintiffs allege these statements were false or misleading, in violation of federal securities laws. The filed complaint alleges Solaris overstated MER's value as, in reality, MER no corporate history in the mobile turbine leasing space. According to the Complaint, MER was a sham company worth nothing and therefore Solaris lacked a reasonable basis for its valuation of and public statements about MER.

The Truth Emerges  

On March 17, 2025, Morpheus Research published a report entitled “Solaris Energy Infrastructure: How a Crumbling Texas Oilfield Services Company Gambled it All On a Convicted Felon And the World’s Richest Man” (the “Morpheus Report”). The Morpheus Report made multiple allegations against MER, stating MER had “no employees, no turbines, and no track record in the mobile turbine rental industry.” In fact, it claimed MER's co-owner was convicted felon with a history of fraud and corruption.  

The Morpheus Report also alleged Solaris used inappropriate accounting techniques to depreciate its turbines over 25 years, when most companies in the industry depreciated their turbines over 8.5 years. Doing so fraudulently presented Solaris as having more assets than it really did.

Market Reaction  

Investors reacted negatively to this news. Solaris’ stock price fell 16.9% on the day of the Morpheus Report. 

Next Steps  

• Submissions for lead plaintiff are due May 27, 2025 in the Solaris energy lawsuit 

• The Court will issue its order for lead plaintiff and counsel in the weeks after submissions are due. 

• The Court will then consider motion for class certification. 

• The Court will later consider a Motion to Dismiss. 

To learn whether you may be eligible for a recovery under this class action, go to the case submission page found here.