Shares of Uranium Energy Corp. (UEC) gained nearly 1% in early morning trading on news that the company won a dismissal in a case before the United States District Court for the Southern District of Texas.

The court issued a final judgment in favor of the uranium firm by dismissing a class-action lawsuit against the company.

“The Court dismissed the action in its entirety with prejudice to the plaintiffs,” the company said in a statement this morning. “The Company further announces that on September 26, 2016, the United States Court of Appeals dismissed the plaintiffs' appeal of the decision following the plaintiffs' request for voluntary dismissal.  As a result, the judgment in favor of the Company is now final.”

The company will not be forced to pay any settlements.

The news comes on the same day that UEC CEO projected potential upside for the firm on the back of rising uranium prices. In an interview with Proactive Investors, UEC founder and CEO Amir Adnani laid out several trends that could push uranium prices higher, although he suggests that forecasting is a futile exercise (for more, read Why Uranium Won’t Recover Anytime Soon (CCJ, UEC).)

With 60 new nuclear plants under construction to accompany the existing 440 plants in 30 countries, Adnani projects that nuclear energy growth will likely rely on a significant global movement: the reduction in carbon emissions (for more, read 5 Ways To Reduce Your Carbon Footprint.)

“Ever since the COP21talks last year I see a stronger correlation between efforts to reduce carbon and nuclear,” Adnani told Proactive Investors. “Growth in nuclear is now likely to be underpinned by a desire to reduce carbon emissions and by the issue of energy security.”

UEC would stand to benefit from a stronger U.S. commitment to nuclear energy. However, Adnani warns that U.S. reliance on nuclear imports and rising demand and competition from China for resources creates a challenging environment for companies (for more, read The Economic Reasons Behind Nuclear Power.)

During a recent downturn in the nuclear industry, UEC has remained proactive in its expansion strategy. The CEO has viewed market weakness as an opportunity for growth.

“We have been making acquisitions during this downturn,” he told Alastair Ford. “We’re now the lead uranium company in Paraguay, where we’ve acquired $50 million worth of exploration work.”

At the same time, the company has been taking on debt. Its operating cash flow sits at negative $10.78 million, while its debt-to-equity ratio is at 56.24.

UEC stock is currently trading at $1.03 per share, in-line with its 52-week moving average.

Its market capitalization sits at $118.76 million. The stock is up roughly 15.25% over the last 52 weeks, but trading has been volatile.

For more, read Top 3 Nuclear Stocks of 2016 (EXC, CCJ)

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