New Era Energy & Digital, Inc. announced that the United States Bankruptcy Court for the Western District of Texas has granted final approval to a settlement resolving the State of New Mexico’s lawsuit against the company. The agreement, which does not constitute an admission of liability, requires the New Era defendants to make a total settlement payment of $1.0 million. This development concludes the trustee-controlled claims related to allegations of a scheme to siphon revenue from wells while abandoning environmental cleanup obligations.

Settlement Terms and Distribution

Pursuant to the settlement agreement, the $1.0 million payment will be allocated between two parties. The State of New Mexico will receive $350,000, while $650,000 will be paid to the United States Trustee for the bankruptcy estate of Acacia Resources, LLC. The payment is scheduled to be made within five business days of the entry of the order granting approval. Upon receipt of funds, the Trustee will release the New Era defendants from the trustee-controlled claims and take necessary actions to dismiss those claims with prejudice.

Remaining Litigation

While the settlement effectively dismisses the five claims brought by the State of New Mexico against New Era Energy & Digital, Inc. and certain related parties, legal challenges persist for the company's leadership. The State of New Mexico continues to maintain three claims against E. Will Gray II, the company's Chief Executive Officer, in his individual capacity. These claims were not part of the settlement approved by the Bankruptcy Court on July 9, 2026.

Background of the Dispute

The lawsuit originated from allegations that New Era Energy, its subsidiary Solis Partners, LLC, and Gray orchestrated a scheme to transfer wells among related entities. The complaint alleged this strategy was designed to generate revenue, potentially totaling millions of dollars, while avoiding liability for plugging and remediation costs by placing burdened companies into bankruptcy. The settlement resolves the claims controlled by the Trustee for the bankruptcy estates of Acacia Resources, LLC and Acacia Operating Company, LLC.

B. Riley Securities analyst Nick Giles has initiated coverage on New Era Energy & Digital with a Buy rating and a price target of $10. The rating highlights a positive outlook for the company's stock performance.

Analyst Details

The coverage initiation comes from Nick Giles, an analyst at B. Riley Securities. The firm set a specific price objective to guide investor expectations.

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