Renewal Fuels, Inc., operating as American Fusion, has provided an update on its pending civil action in King County Superior Court. The company announced that on February 26, 2026, the court entered an order dismissing all claims against Justin Costello pursuant to Civil Rule 41. With Costello no longer a party to the action, the court struck his Emergency Motion for Stay of All Proceedings.
In a separate procedural ruling, the court struck the company's Motion for Entry of Default Judgment against the remaining corporate defendants. This decision was based solely on citation formatting requirements under Civil Rule 7 and King County Local Civil Rules. The company emphasized that defaults entered against the corporate defendants remain in place, and the court did not question service, default, rescission, or the evidentiary record. The ruling was procedural and did not address the merits of the company's claims.
The underlying legal action seeks rescission of two 2021 asset purchase agreements and cancellation of approximately 1,683,000,000 shares issued in connection with those transactions. The company contends no consideration was received for these shares. Renewal Fuels is currently 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 name change and voluntary symbol change.
Company management addressed commentary circulating online, emphasizing that the court's orders do not constitute a ruling against the company on the substance of its claims. The company remains committed to resolving the disputed share issuances through the judicial process. This legal matter represents a significant corporate governance issue for the company as it transitions to its new identity as American Fusion.
The company's focus on fusion energy technology development continues through its wholly owned subsidiary, Kepler Fusion Technologies. The company's strategy centers on building a scalable, infrastructure-grade fusion energy platform supported by proprietary technology. 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 in its newsroom at https://tinyurl.com/rnwfnewsroom. The resolution of this litigation could have significant implications for the company's capital structure and its planned transition to American Fusion Inc., potentially affecting shareholder value and the company's ability to execute its fusion energy commercialization strategy.
