(P1) Investors have filed a class-action lawsuit against New Era Energy & Digital, Inc. (NASDAQ: NUAI) after the company's stock price fell 41% in a single day on allegations of a fraudulent scheme to avoid environmental responsibilities.
(P2) "If you purchased New Era Energy securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement," said the Rosen Law Firm, a global investor rights law firm.
(P3) The lawsuit alleges that New Era Energy and its executives made false and misleading statements, failing to disclose that the company overstated progress on its Texas Critical Data Centers project and was involved in a fraudulent scheme to "pocket revenues from hundreds of oil and gas wells in New Mexico." The company's stock fell 6.9% on December 12, 2025, after a short-seller report from Fuzzy Panda Research made similar allegations.
(P4) The stock plunged further on December 29, 2025, closing at $2.69 per share after reports that the New Mexico Attorney General had filed a lawsuit against the company. This sharp decline has prompted law firms to seek out investors who suffered significant losses to serve as lead plaintiff in the class action.
The core of the allegations revolves around a scheme where New Era Energy & Digital, its CEO E. Will Gray II, and affiliated companies allegedly transferred oil and gas wells among related entities. The purpose of this was to place liability-bearing companies into bankruptcy to avoid the costs of plugging and remediating the wells.
Fuzzy Panda Research's short report, titled "NUAI: Serial Penny Stock CEO Combined Bad Gas Assets, Paid Stock Promo, Renamed Co & Added ‘AI’," also claimed the company spent 2.5 times more on stock promotions than on operating its oil and gas wells. The report highlighted the CEO's alleged history of running penny stock companies "into the ground."
The class period for the lawsuit covers investors who purchased New Era Energy & Digital securities between November 6, 2024, and December 29, 2025. The deadline for investors to move the court to serve as the lead plaintiff is June 1, 2026. The lead plaintiff is the investor with the largest financial interest in the relief sought by the class and directs the litigation on behalf of all class members.
The decline in stock price has presented a significant setback for investors. The legal proceedings will be a key factor for the company's future, with the upcoming deadline for the lead plaintiff application being a critical date for shareholders.
This article is for informational purposes only and does not constitute investment advice.
