Key Takeaways:
Rosen Law Firm issued a reminder to investors of a June 1, 2026 deadline for a lawsuit against New Era Energy & Digital Inc. after the stock fell 41 percent on news of a fraud complaint.
"The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements," according to a filing from law firm Bronstein, Gewirtz & Grossman, LLC.
The lawsuit follows a December 12 short-seller report that caused a 6.9 percent stock drop, and a subsequent December 29 report that New Mexico’s Attorney General had filed a suit alleging a “fraudulent oil-and-gas scheme,” which preceded a 41 percent plunge in the share price to $2.69.
The legal actions place New Era’s management and financial statements under scrutiny, with the class period covering from November 6, 2024, to December 29, 2025. The case could result in significant financial damages for the company if the allegations of false statements and fraudulent transfers are proven.
The lawsuit filed by the New Mexico Attorney General alleges New Era Energy, its CEO Everett Willard Gray II, and affiliated companies orchestrated a scheme to "siphon revenue from wells that produce fossil fuels while abandoning environmental cleanup obligations." The complaint details a pattern of transferring wells among related entities, including subsidiary Solis Partners, to place liability-bearing companies into strategic bankruptcies to avoid plugging and remediation costs. According to the complaint, the defendants "received significant revenue (possibly into the millions of dollars) that they knew would otherwise be required to address" these environmental costs.
The legal filings came after a critical December 12 report from short-seller Fuzzy Panda Research. The report alleged that CEO E. Will Gray II has a nearly 20-year history of running oil and gas penny stock companies "into the ground." It also called the company's pivot to fueling AI companies a "fantasy," alleging that despite claims of significant progress, no air quality or construction permit applications had been submitted for its Texas Critical Data Centers project, according to government databases.
The sharp declines have erased significant market value, putting the stock at its lowest since its public listing. Investors will be watching for the company's formal response to the allegations and the court's decision on the lead plaintiff by the June 1 deadline.
This article is for informational purposes only and does not constitute investment advice.
