Shares of Solaris Energy Infrastructure, Inc. (NYSE: SEI) were down more than 15% on March 17, 2025, following a Morpheus Research report alleging that the company’s Power Solutions division is built on the overvalued acquisition of Mobile Energy Rentals LLC (MER), involving an individual with a history of environmental crimes. Additionally, the report raises concerns about potential overreliance on a single major customer, undisclosed environmental regulatory risks, and questionable financial reporting practices.
The complaint filed in this class action alleges that 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.
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