SES AI Corporation (SES) promoted an AI-powered battery growth story built around major partnerships, a Texas deal targeting up to $45 million, new customers, and recurring revenue. Investors now allege that much of that story was misleading.
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A federal securities lawsuit has been filed against SES AI Corporation and its CEO, alleging the company misled investors by touting business deals with partners that allegedly lacked meaningful operations while allegedly concealing logistics constraints that delayed shipments and impacted fourth-quarter revenue.
The complaint alleges that throughout a class period spanning January 29, 2025, through March 4, 2026, SES AI painted a misleading picture of its commercial trajectory by announcing partnerships and revenue expectations tied to companies that, according to the lawsuit, had little to no operational capacity. When SES AI reported fourth quarter 2025 results on March 4, 2026, and issued 2026 revenue guidance of $30 million to $35 million, far below the $51.67 million analysts had expected, the stock cratered. On March 5, 2026, SES shares fell $0.63 per share, or 36.8%, closing at $1.08.
Investors who purchased SES AI securities during the class period and want to understand whether they may be affected are encouraged to learn more about their eligibility.
From Battery Innovation to Wall Street Scrutiny
SES AI Corporation is a developer and manufacturer of AI-enhanced lithium-metal and lithium-ion rechargeable battery technologies and battery materials. The company’s products target a range of applications, including energy storage systems, urban air mobility, drones, robotics, and electric vehicles. SES AI is incorporated in Delaware, headquartered in Woburn, Massachusetts, and trades on the New York Stock Exchange under the ticker symbol SES.
The company has also developed an AI platform called Molecular Universe, which it has promoted as a tool for discovering new battery electrolyte materials. The complaint describes SES AI as a company that positioned itself at the intersection of advanced battery technology and artificial intelligence, seeking to monetize both hardware products and software platform licensing.
A Pattern of Alleged Phantom Partnerships and Circular Revenue
At the heart of the lawsuit is the allegation that SES AI and its CEO, Qichao Hu, systematically inflated the company’s commercial prospects by announcing deals with business partners that lacked the capacity to generate meaningful revenue. The complaint outlines a series of partnerships and transactions that, according to the plaintiffs, were designed to create the appearance of a thriving commercial pipeline.
The first deal at issue is a memorandum of understanding announced on January 29, 2025, with AISPEX, a Texas-based retail energy provider. SES AI touted the deal as targeting up to $45 million in revenue for battery energy storage system solutions at a crypto mining site in Texas. The complaint alleges that AISPEX had no meaningful crypto mining operations in Texas. A subsequent short-seller report cited in the Complaint alleged that AISPEX’s listed headquarters was a ‘ramshackle building surrounded by shipping containers’ bearing the signage of a different company, and that no progress had been made on the deal.
The complaint also takes aim at SES AI’s promotion of a purchase order with Data Blanket, an AI drone startup, for lithium-metal cells. According to the lawsuit, SES AI never actually delivered any product to Data Blanket, which the complaint describes as a small startup with only a handful of employees and limited business capacity. Similarly, the company’s September 2025 acquisition of Shenzhen UZ Energy Co., Ltd. was promoted as positioning SES AI to become “an active player in the global $300 billion ESS market.” The complaint alleges UZ Energy was a low-margin business with very little U.S. presence, and that companies sharing that address had a registered agent who was sued in a bankruptcy proceeding for allegedly helping launder money as part of a billion-dollar Ponzi scheme.
A joint venture with Hisun New Energy Materials, announced in October 2025 to commercially supply electrolyte materials discovered by Molecular Universe, is also challenged. The complaint alleges that Hisun had no manufacturing capacity within the United States, that its planned Texas facility site remained undeveloped swampland, its listed corporate address was a residential home, and it appeared to have only one U.S. employee.
More broadly, the complaint alleges that SES AI created the appearance of genuine revenue for Molecular Universe through circular transactions, purchasing equipment from companies in exchange for those companies buying Molecular Universe licenses. A former employee cited in the complaint characterized the AI platform as “kind of a toy” with limited practical value due to a major bottleneck at the synthesis and testing stage.
Investors following this matter may want to stay informed as the case develops.
What SES AI Leadership Told the Market
The complaint highlights a series of public statements by CEO Qichao Hu that plaintiffs allege were materially misleading. On the company’s fourth-quarter 2024 earnings call on February 25, 2025, Hu reiterated the AISPEX deal and highlighted a “significant purchase order” with Data Blanket for lithium-metal cells. According to the complaint, these statements overstated the commercial reality of both relationships.
When announcing the UZ Energy acquisition in September 2025, the company stated it positioned SES AI to become “an active player in the global $300 billion ESS market.” The complaint alleges this framing was misleading given UZ Energy’s limited operational footprint and low-margin profile.
As late as January 16, 2026, at the Needham Growth Conference, Hu discussed the company’s revenue guidance and growth prospects without disclosing logistics constraints that the complaint alleges were already materially impacting fourth-quarter revenues. The company’s Q3 2025 quarterly report, which included Sarbanes-Oxley certifications signed by Hu, also allegedly contained misleading risk disclosures that failed to acknowledge these known constraints.
The complaint further notes that Dr. Hong Gan, SES AI’s Chief Science Officer, sold 250,000 shares on November 17, 2025, for $497,500, and another 250,000 shares on January 22, 2026, for $590,000, totaling over $1 million in proceeds during the period when these alleged misrepresentations were being made.
How the Alleged Truth Reached the Market
The first significant challenge to the company’s narrative came on December 9, 2025, when Wolfpack Research published a detailed short-seller report. The report alleged that SES AI had announced “phantom deals” with entities lacking substantial operations and had promoted Molecular Universe to distract from the impending loss of major OEM customers, Honda and Hyundai. Wolfpack reported site visits to AISPEX’s headquarters, Hisun’s purported facility location, and UZ Energy-related addresses, finding a pattern of business partners whose physical presence and operational capacity did not match SES AI’s public representations. A former employee quoted in the report described Molecular Universe subscriptions as effectively rebates on equipment purchases rather than genuine demand.
The Complaint alleges that additional problems were revealed on March 4, 2026, when SES AI held its fourth quarter earnings call. CFO Jing Nealis disclosed that logistics constraints had delayed shipments at the end of the year, pushing approximately $1.5 million of revenue into the first quarter of 2026. The complaint alleges the company knew or recklessly disregarded that these logistics constraints were materially impacting fourth-quarter revenues, but did not disclose them during Hu’s January 2026 conference appearance. The company also issued 2026 revenue guidance of $30 million to $35 million, dramatically below the $51.67 million Wall Street analysts had expected.
On March 5, 2026, SES shares fell $0.63 per share, or 36.8%, to close at $1.08. Financial publication Benzinga reported that shares were “trading sharply lower” after the company “posted mixed fourth-quarter results and issued a 2026 sales outlook that trailed Wall Street expectations.”
The Investment Implications of the SES AI Allegations
The allegations against SES AI present a case study in the risks of taking corporate partnership announcements at face value. According to the complaint, the company built a narrative of rapid commercialization around deals with partners whose operational capacity did not support the revenue expectations SES AI was projecting. At the same time, the complaint alleges the company’s AI platform was generating revenue through circular transactions rather than organic commercial demand.
For shareholders who purchased SES AI securities during the class period, the alleged gap between the company’s public statements and its underlying business reality is at the center of the claimed losses. The 36.8% single-day stock decline on March 5, 2026, following the disclosure of weak guidance and logistics constraints, reflects the market reaction plaintiffs allege was tied to prior misrepresentations.
The alleged insider sales by the Chief Science Officer during the period of claimed misrepresentations add another dimension for investors evaluating the case. The timing of those sales, totaling over $1 million, coincided with the period in which the Complaint alleges SES AI was making misleading statements.
The Legal Framework Behind the Claims
The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5. Section 10(b) and Rule 10b-5 prohibit making materially false or misleading statements in connection with the purchase or sale of securities. The plaintiffs allege that SES AI and CEO Hu made such statements by overstating the commercial viability of its partnerships, misrepresenting the capabilities and revenue generation of Molecular Universe, and concealing known logistics constraints affecting revenues.
Section 20(a) establishes liability for individuals who control persons or entities that violate the securities laws. The complaint names CEO Qichao Hu as a control person who allegedly directed and participated in the statements at issue.
Investors who purchased SES AI securities during the class period between January 29, 2025, and March 4, 2026, are encouraged to learn more about their rights under the federal securities laws.
About Levi and Korsinsky, LLP
Levi & Korsinsky, LLP is a nationally recognized securities litigation firm representing investors in complex shareholder actions. The firm has extensive expertise and a team of over 70 employees to serve our clients. Attorney advertising. Prior results do not guarantee similar outcomes.
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