The King County Superior Court issued a procedural ruling in the ongoing Washington state litigation involving Renewal Fuels Inc., which operates under the American Fusion brand. On February 26, 2026, the court dismissed all claims against former executive Justin Costello while maintaining defaults against the remaining corporate defendants. The court struck the company's Motion for Entry of Default Judgment against those corporate defendants solely due to citation formatting requirements under Civil Rule 7 and King County Local Civil Rules, a technical issue that did not affect the underlying defaults.
Company management emphasized that this ruling was purely procedural and did not address the merits of the claims, nor did it question service, default, rescission, or the evidentiary record. The defaults entered against the corporate defendants remain fully in place according to the court's orders. This distinction is crucial because 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 share issuances, making their cancellation essential for corporate integrity.
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 company's name change and voluntary symbol change. The legal developments occur as the company continues its transition following its merger with Kepler Fusion Technologies, through which it is developing fusion energy technologies including the Texatron platform. The company has filed a corporate action with FINRA to change its legal name to American Fusion Inc., reflecting its strategic focus on building scalable, infrastructure-grade fusion energy technology supported by proprietary systems and intellectual property development.
Company officials addressed circulating online commentary by clarifying 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. For additional information about the company's technology platform, resources are available at https://www.keplerfusion.com and https://americanfusionenergy.com. This litigation outcome matters because it removes a procedural obstacle while preserving the company's position against corporate defendants, allowing Renewal Fuels to advance its corporate restructuring and focus on its fusion energy mission under the American Fusion brand.
