The Lumio solar lawsuit most consumers are asking about is a Florida federal class action filed in October 2023 accusing Lumio HX and its predecessor Atlantic Key Energy of installing solar systems that did not work and refusing to honor warranties. That case was overtaken by events when Lumio filed Chapter 11 bankruptcy in September 2024, sold its assets to Zeo Energy Corp., and transitioned into a liquidating trust that is now the main channel for homeowner claims.1ClassAction.org. Class Action Alleges Atlantic Key Energy, Lumio HX Installed Faulty Solar Panels, Failed to Honor Roof Damage Warranties2Stretto. Lumio Holdings, et al.
The Florida Class Action
Shoshana Smith, a Florida homeowner, filed Smith v. Lumio HX, Inc. et al. in the U.S. District Court for the Middle District of Florida on October 6, 2023 (Case No. 2:23-cv-00849). The complaint alleged that Lumio and Atlantic Key Energy “systemically, repeatedly, and continually” failed to install operable solar systems, installed panels without required permits, and repeatedly failed inspections. One consumer quoted in the filing said water “drips on my dining table” when it rains because the installation ruined the roof.3ClassAction.org. Smith v. Lumio HX, Inc. et al., Complaint
Smith’s own system was inoperable for 234 days. A roofing contractor traced the water damage to a “lack of a water-tight seal around the solar panel anchors” and “a low quality type of caulk.” Despite a stated 10-year warranty covering roof penetration damage, Smith was allegedly required to pay $10,965 out of pocket for repairs and reinstallation. The suit also described door-to-door sales tactics in which representatives falsely claimed the systems were “free” or that they were “working for the government.”3ClassAction.org. Smith v. Lumio HX, Inc. et al., Complaint1ClassAction.org. Class Action Alleges Atlantic Key Energy, Lumio HX Installed Faulty Solar Panels, Failed to Honor Roof Damage Warranties
Atlantic Key Energy never responded, and the clerk entered default against it on December 11, 2023; the complaint alleges AKE dissolved shortly after suit was filed. Lumio HX answered the amended complaint on December 1, 2023, denying the claims as “mischaracterizations and conclusory allegations.” As of October 2024 the case was pending before Judge Sheri Polster Chappell, with discovery due by late December 2024 and trial set for August 2025. Whether the case has been stayed or otherwise affected by Lumio’s bankruptcy is not confirmed in available records.4Justia. Smith v. Lumio HX Inc. et al., Docket5WPTV. Treasure Coast Families Say Solar Panel Promises Left Them Trapped in Costly 25-Year Loans
The Chapter 11 Filing and Sale to Zeo Energy
On September 3, 2024, Lumio Holdings, Inc. and Lumio HX, Inc. filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the District of Delaware (Case No. 24-11916), before Judge J. Kate Stickles. The companies entered bankruptcy with hundreds of millions of dollars in estimated liabilities, and the court approved $8 million in interim debtor-in-possession financing from prepetition lender White Oak Global Advisors to keep operations running.2Stretto. Lumio Holdings, et al.6Davis Polk. Lumio Chapter 11 Filing, DIP Financing, and Stalking Horse Bid
On November 1, 2024, the bankruptcy court approved a sale of substantially all Lumio assets to Zeo Energy Corp., a Florida-based solar provider. Zeo paid $4 million in cash plus 6,206,897 shares of Zeo common stock, with the equity going directly to White Oak at closing to partially satisfy its superpriority claims rather than flowing to the broader estate. The purchase included the “Lumio” brand, intellectual property, uninstalled residential solar contracts, inventory, equipment, and customer records.7Bloomberg. Bankrupt Solar Firm Lumio Set to Sell for $4 Million Plus Shares8SEC. Zeo Energy Corp., Asset Purchase Agreement
The plan was confirmed in March 2025 with an effective date of February 18, 2025. The case moved into a liquidation phase run by the Lumio Liquidating Trust, with Jeffrey T. Varsalone of VRS Restructuring Services, LLC as trustee.9PACER Monitor. Lumio Holdings, Inc.2Stretto. Lumio Holdings, et al.
What Zeo Energy Did and Did Not Take On
This is where the fault line runs for most homeowners. Zeo took on active projects that had not yet reached “Permission to Operate” status as of November 1, 2024, and has said it is completing installations under Lumio’s existing customer and financing agreements. Systems already completed and operational before that date were not part of the acquisition, and Zeo does not appear to have assumed general warranty obligations for those legacy installations. Zeo’s 2025 financial results acknowledged incurring “additional expenses” related to “servicing acquired Lumio customers and leases.”10Solar Power World Online. Zeo Energy Completes Acquisition of Residential Solar Company Lumio11Zeo Energy. Zeo Energy Corp. Announces Completion of Acquisition of Lumio12GlobeNewsWire. Zeo Energy Reports Fourth Quarter and Full Year 2025 Financial Results
Where Homeowners Stand Now
Most customers financed their installations through third-party lenders, and those loan obligations survive the bankruptcy. Consumer protection attorney Amy Judkins told WPTV: “Once the company goes bankrupt, you no longer have an entity that you can seek legal recourse through.” Homeowners have also reported that liens tied to their solar loans make selling their homes nearly impossible unless a buyer agrees to assume the debt.5WPTV. Treasure Coast Families Say Solar Panel Promises Left Them Trapped in Costly 25-Year Loans
For homeowners with completed systems and no warranty support, the primary avenue for potential recovery is the bankruptcy claims process administered by Stretto, Inc. Roughly 950 to 1,000 proofs of claim have been filed against the estate. The trustee has been filing omnibus objections to expunge, reclassify, or reduce claims, and many have been resolved informally. The deadline to file claim objections was extended to August 17, 2026. As of June 2026, the trust filed a First Notice of Satisfaction of Claims along with third and fourth omnibus objections, with a hearing set for August 6, 2026. Distribution amounts for general unsecured creditors remain unknown and depend on final allowed claims and how much the trustee recovers from its lawsuits against former insiders.13Stretto. First Omnibus Objection (Non-Substantive)14Stretto. Motion to Extend Claim-Objection Deadline9PACER Monitor. Lumio Holdings, Inc.
Trustee Lawsuits Against Former Officers
After the plan took effect, the liquidating trustee filed two adversary proceedings on August 27, 2025, targeting insiders tied to Lumio’s predecessor companies. Recoveries in these cases feed the trust and, ultimately, whatever is available to distribute to creditors.
In Varsalone v. Atlantic Key Energy, LLC et al. (Adv. No. 25-52129), the trustee sued AKE and four individuals: Brian Schonbeck, Judd Stanger, Cameron Stanger, and Frank Grezaffi. The seven causes of action include breach of contract, conversion, unjust enrichment, breach of fiduciary duty, and violations of non-compete and employment agreements. The trustee alleges Schonbeck, Cameron Stanger, and Grezaffi charged $207,527 in personal expenses to Lumio corporate credit cards, that defendants retained over $2 million in accounts receivable owed to Lumio, and that they permitted the continued clawback of an additional $2 million. Grezaffi answered denying the allegations and asserting a setoff of roughly $818,000 for unpaid services. The case remains active.15Stretto. Adversary Complaint, Varsalone v. Atlantic Key Energy LLC et al.16Stretto. Answer and Affirmative Defenses, Grezaffi
A parallel complaint targets Smart Energy Today, Inc. and its founders Rex Schade, Yumi Schade, and Jonathan Gibbs, who also co-founded Lumio. The trustee alleges the Schades charged personal expenses to Lumio credit cards ($11,188 by Rex Schade and $10,049 by Yumi Schade), retained over $163,000 in receivables belonging to Lumio, and violated their non-compete agreements by working for a competitor called Solar AI after leaving Lumio in November 2023. The trustee seeks damages of at least $184,330 plus interest and attorneys’ fees.17Stretto. Adversary Complaint, Varsalone v. Smart Energy Today Inc. et al.
Homeowners who believe they have a claim and have not already filed one should check the case docket through Stretto to see whether they can still participate in the trust’s distribution process.