DECISION & ORDER On October 23, 2018, the plaintiff, the Power Authority of the State of New York (“Power Authority”), by and through a qui tam relator, Solar Liberty Energy Systems, Inc. (“Solar Liberty”), filed an amended complaint under the New York False Claims Act (“NYFCA”) in New York State Supreme Court, Erie County. Docket Item 1-5. On November 15, 2019, the defendant, Advanced Energy Industries, Inc. (“Advanced Energy”), removed the action to this Court based on diversity jurisdiction. Docket Item 1; see 28 U.S.C. §1332. On December 6, 2019, Solar Liberty moved to remand this matter to state court. Docket Item 7. A week later, Advanced Energy moved to dismiss for failure to state a claim. Docket Item 11. On January 3, 2020, Solar Liberty responded to the motion to dismiss and cross-moved to amend its complaint, Docket Item 14, attaching a proposed second amended complaint, Docket Item 14-2. That same day, Advanced Energy responded to Solar Liberty’s motion to remand. Docket Item 13. On January 27, 2020, both parties replied in support of their motions, and Advanced Energy responded to Solar Liberty’s cross-motion to amend. Docket Items 19 and 20. And on February 6, 2020, Solar Liberty replied in support of its cross-motion to amend. Docket Item 21. This Court held oral argument on April 28, 2020, and reserved decision. Docket Item 27. For the reasons that follow, this Court denies Solar Liberty’s motion to remand; denies Advanced Energy’s motion to dismiss; and grants Solar Liberty’s motion to amend. Solar Liberty shall file its second amended complaint within seven days of the date of this decision and order. BACKGROUND The first amended complaint tells the following story.1 Solar Liberty develops and installs “renewable energy technologies in the United States and has substantial expertise with photovoltaic electric generation systems, commonly referred to as solar systems.” Docket Item 1-5 8. Advanced Energy makes and sells “solar inverters,” which “are an integral component of solar systems.” Id. 9. More specifically, “[i]nverters convert the variable voltage direct current (DC) output of a photovoltaic (PV) solar panel into fixed voltage alternating current (AC),” which “can then be incorporated into a local power grid and used to decrease the electric demand of the local solar photovoltaic system owner.” Id. From approximately November 2014 through August 2015, “Solar Liberty entered into a series of related contracts [with the Power Authority (the 'NYPA Contracts')] that called for the design, engineering, procurement, and construction of solar systems to be installed on the roofs of approximately 16 public schools located throughout New York City (‘NYC Public School Solar Systems’).” Id. 10. To fulfill the NYPA Contracts, “Solar Liberty needed to procure solar inverters.” Id. 11. “Through a purchase order numbered 1587 and dated December 18, 2014,…Solar Liberty purchased…twenty-two (22) ’3TL 20kW — Gen 1 three-phase string inverters’ and ‘forty-one (41) 3TL 24kW — Gen 1 three-phase string inverters’” from Advanced Energy; and “[t]hrough [a] purchase order numbered 1806 and dated August 27, 2015,…Solar Liberty purchased…an additional sixteen (16) ’3TL 20kW — Gen 1 three-phase string inverters’ and fifty (50) ’3TL 24kW — Gen 1 three-phase string inverters’” from Advanced Energy. Id.
12-13. Solar Liberty paid for these purchases “with funds received from the New York Power Authority pursuant to the NYPA Contracts.” Id. 14. Solar Liberty then installed the inverters that it purchased from Advanced Energy “as components of the NYC Public School Solar Systems, as part of a joint program undertaken by the New York Power Authority as well as the New York City Department of Citywide Administrative Services, as incentivized by the New York State Energy Research and Development Authority.” Id. 15. But “[s]oon after installation, [the] inverters began to experience widespread and persistent failures, which…resulted in loss of power generation and significant and ongoing repair costs.” Id. 16. Advanced Energy was well aware of “the widespread and persistent defects associated with [its] inverters,” but it “actively concealed its knowledge of the defects associated with its inverters when it sold them to…Solar Liberty.” Id.
