Solaris Energy (SEI) Shares Plunge 6.35% to Multi-Year Low as Legal Challenges, Dubious Deal Spark Lawsuits

Solaris Energy (SEI) shares hit a new multi-year low on October 10, 2025, with an intraday decline of 6.35% as the stock continued its downward spiral following a controversial acquisition and mounting legal challenges. The two-day slump saw the stock fall 6.70%, reflecting deepening investor skepticism after revelations about the company’s strategic and financial missteps.

The turmoil traces back to Solaris Energy’s 2024 acquisition of Mobile Energy Rentals (MER), a firm later exposed as lacking operational credibility. Reports highlighted MER’s absence of employees, turbines, or a proven track record in the energy sector, while its co-owner’s criminal history further undermined the deal’s legitimacy. Legal filings allege the acquisition was executed without proper due diligence, enabling Solaris to inflate profitability metrics through improper depreciation accounting, misleading investors about its financial health.

Investor confidence eroded after Morpheus Research’s March 2025 report exposed MER’s vulnerabilities, triggering a 17% single-day stock plunge. The subsequent class-action lawsuit, led by The Gross Law Firm, accuses Solaris of material misstatements and omissions, including overstating the MER acquisition’s synergies and concealing the risks of MER’s unstable earnings model. Shareholders who purchased stock between July 2024 and March 2025 are now seeking compensation, with a lead plaintiff deadline set for May 27, 2025.

Legal and reputational fallout has compounded Solaris Energy’s challenges. The company faces potential financial penalties and heightened regulatory scrutiny, while its governance practices—highlighted by due diligence failures and conflicts of interest—have drawn sharp criticism. Analysts note the stock’s volatility underscores the sector’s sensitivity to high-risk acquisitions, particularly when transparency and ethical standards are compromised. As the case unfolds, the company’s ability to rebuild trust and address operational weaknesses will be critical to its long-term survival.