New Era Energy & Digital (NASDAQ:NUAI) said it has reached a pending settlement with the State of New Mexico that would result in all claims against the company being dismissed.
The digital infrastructure developer said the US Trustee for the bankruptcy estates of Acacia Resources, LLC and Acacia Operating Company, LLC filed the motion on May 22 in the US Bankruptcy Court for the Western District of Texas, seeking approval of a $1 million settlement with the company and certain related parties.
Under the agreement, New Era would pay $1 million to the Trustee within five business days of Bankruptcy Court approval, after which the Trustee would drop the claims it controls against the company.
The New Mexico lawsuit centers on legacy helium and gas assets and related environmental obligations, with allegations including violations of the Uniform Voidable Transactions Act against the company and CEO E Will Gray II.
New Era denied any liability or wrongdoing, noting the settlement remains subject to Bankruptcy Court approval.
The deal would resolve all five of New Mexico's claims against the company, though three separate claims against Gray personally will proceed. Gray intends to fight those in court.
Shares of New Era were up 5.7% in premarket trading Friday.