The stock of New Era Energy & Digital (Nasdaq:NUAI) took a sharp dive on Monday, falling over 41%, and continued to slide by a further 8.9% during after-hours trading, following a lawsuit filed by New Mexico's Attorney General against CEO Everett Willard Gray and two associates. The lawsuit alleges their involvement in a fraudulent scheme centred on oil and gas wells in the state.
According to the complaint lodged in the First Judicial District Court, Gray and his associates allegedly profited significantly from New Mexico's fossil fuel wells through a series of shell companies, all while deliberately ignoring environmental regulations. The lawsuit claims that these individuals used multiple shell entities to avoid plugging inactive wells, creating serious environmental hazards such as methane leaks and soil contamination.
