Renewal Fuels, Inc., operating under the American Fusion brand, has provided an update on its ongoing civil action in King County Superior Court. The company reported that on February 26, 2026, the court dismissed all claims against Justin Costello and struck his emergency motion for stay of proceedings. This development removes Costello as a party to the litigation while the core case against corporate defendants continues.
The court separately struck the company's motion for entry of default judgment against remaining corporate defendants on procedural grounds related to citation formatting requirements. Importantly, defaults entered against these corporate defendants remain in place, and the court did not question service, default status, rescission claims, or the evidentiary record. The ruling was purely procedural and did not address the merits of the company's substantive claims.
The underlying legal action seeks rescission of two 2021 asset purchase agreements and cancellation of approximately 1.683 billion shares issued in connection with those transactions. The company contends it received no consideration for these shares. Renewal Fuels is now refiling a corrected motion that complies with the court's procedural directives. Management believes this represents the last remaining material item needed to effect corporate action with FINRA for the company's name change and voluntary symbol change.
This legal proceeding has significant implications for shareholders and the company's strategic direction. The resolution of disputed share issuances could substantially impact the company's capital structure and market valuation. For investors following the company's transition to American Fusion, the legal clarity provided by this update helps assess potential dilution risks and corporate governance matters. The company's focus on fusion energy technology development through its subsidiary Kepler Fusion Technologies adds another layer of importance to these proceedings, as capital structure stability is crucial for funding advanced energy research.
Management has addressed online commentary about the court's orders, emphasizing that the rulings do not constitute a judgment against the company on the substance of its claims. The company remains committed to resolving the disputed share issuances through the judicial process. For more information about Kepler Fusion Technologies and its Texatron™ platform, please visit www.keplerfusion.com and americanfusionenergy.com. The latest news and updates relating to the company are available at https://tinyurl.com/rnwfnewsroom.
