Key Takeaways
New Era Energy & Digital, Inc. (NASDAQ: NUAI) faces a securities class-action lawsuit alleging it fabricated development milestones and concealed a fraudulent scheme, which erased 47% of the company’s market value in late December 2025.
"Companies that make specific promises to investors about future performance have an obligation to disclose known risks to those projections," Joseph E. Levi, Esq. of Levi & Korsinsky, said in a statement. The law firm alleges the contrast between New Era's public statements and government records "raises serious questions about whether investors received accurate information."
The lawsuit covers investors who purchased shares between November 6, 2024, and December 29, 2025. The allegations center on two main issues: a promised 1-gigawatt AI data center project and the company's legacy oil-and-gas operations. On December 12, 2025, the stock fell 6.9% to $3.35, and on December 29, it plunged another 41% to close at $2.69.
The legal action follows two damaging reports. A December 12 report from Fuzzy Panda Research alleged that despite New Era claiming "significant progress" on air permits for its Texas data center, government database searches revealed "not even an application" had been filed. A subsequent report on December 29 by Hunterbrook Media publicized a lawsuit by the New Mexico Attorney General, accusing the company and its CEO, Everett Willard Gray II, of running a "fraudulent oil-and-gas scheme."
New Era had told investors it was making "tangible progress across all fronts" for a massive AI-powered data center. In an October 2025 press release, the company claimed it was pursuing a permit that "can typically be approved within 90 days."
The Fuzzy Panda Research report directly contradicted these claims, stating, "We found NOTHING." The report called the company's pivot to fueling AI companies a "fantasy" and detailed CEO E. Will Gray's long history of "incinerating value at oil & gas pink sheet companies."
The New Mexico Attorney General's lawsuit alleges a more profound issue. It claims New Era, its subsidiary Solis Partners, and Gray orchestrated a scheme to "siphon revenue from wells that produce fossil fuels while abandoning environmental cleanup obligations."
According to the complaint, the scheme involved transferring valuable, revenue-producing wells to New Era's subsidiary while leaving liability-heavy wells in other related-party companies that were then placed into bankruptcy to avoid remediation costs. The complaint alleges the defendants "received significant revenue (possibly into the millions of dollars) that they knew would otherwise be required to address" these environmental obligations.
The stock's two-day collapse in December reflects the market's reaction to these revelations, which suggest a significant gap between the company's public narrative and its actual operations. The lead plaintiff deadline for the class action is June 1, 2026. Investors who purchased the stock during the class period may be eligible for compensation.
This article is for informational purposes only and does not constitute investment advice.
