Renewal Fuels Inc. (OTC: RNWF), operating under the American Fusion brand, has provided an update on its ongoing civil action in King County Superior Court. The court entered orders on February 26, 2026, that dismissed all claims against former executive Justin Costello while maintaining defaults against corporate defendants in the case.
The court's dismissal of claims against Costello was made pursuant to Civil Rule 41, which resulted in the striking of his Emergency Motion for Stay of All Proceedings. Separately, the court struck the company's Motion for Entry of Default Judgment against remaining corporate defendants on procedural grounds related to citation formatting requirements under Civil Rule 7 and King County Local Civil Rules.
Company management emphasized that the defaults entered against corporate defendants remain in place and that the court's ruling was purely procedural, addressing formatting issues rather than questioning service, default, rescission, or the evidentiary record. The court did not rule on the merits of the company's substantive claims in this procedural decision.
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 it received no consideration for these share issuances. Renewal Fuels is currently refiling a corrected motion that complies with the court's procedural directives, which management believes represents the last remaining material item needed to effect corporate action with FINRA for the name change and voluntary symbol change.
This legal development is significant for investors and stakeholders following the company's transition to focus on fusion energy technologies 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. Information about Kepler Fusion Technologies and its Texatron™ platform is available at www.keplerfusion.com and americanfusionenergy.com.
The resolution of these disputed share issuances through the judicial process could have substantial implications for the company's capital structure and its planned corporate actions, including the name change to American Fusion Inc. that has been filed with FINRA. Management has addressed online commentary by clarifying that the court's orders do not constitute a ruling against the company on the substance of its claims, maintaining that the procedural nature of the decision preserves the company's position in the litigation.
For those following corporate developments, additional information relating to RNWF is available in the company's newsroom at https://tinyurl.com/rnwfnewsroom. The company remains committed to pursuing its claims through the legal system while continuing its focus on fusion energy technology development and commercialization.
