A securities class action has been filed against NuScale Power Corporation (SMR) on behalf of all investors who purchased or otherwise acquired NuScale Power Class A shares between May 13, 2025 through November 6, 2025. This case has been filed in the USDC – OR.
According to the complaint, NuScale’s core technology, the NuScale Power Module (“NPM”), is a small modular nuclear reactor designed to generate energy within a broader power plant. Prior to the start of the class period, NuScale entered into a global commercialization partnership with ENTRA1 Energy LLC (“ENTRA1”). Defendants claimed that this critical partnership would allow the Company to take its NPM technology from development to deployment, enabling NuScale’s NPMs to serve as meaningful, revenue-generating components in power plants. During the class period, defendants emphasized ENTRA1’s purported wide-ranging capabilities and deep experience in power plant development in their communications with investors. However, during its entire operating history, ENTRA1 had never built, financed, or operated any significant project, let alone one in the highly technical and difficult field of nuclear power generation.
On November 6, 2025, NuScale surprised investors by revealing that the Company’s general and administrative expenses had ballooned more than 3,000% to $519 million during its third fiscal quarter, up from $17 million in the prior year period, due largely to NuScale’s payment of $495 million to ENTRA1 for its TVA agreement. As a result, NuScale’s quarterly net loss skyrocketed to $532 million, up from $46 million in the prior year period. On this news, the price of NuScale Class A shares declined more than 12% over a two-day trading period, from approximately $32 per share on November 6, 2025 to approximately $28 per share on November 10, 2025. The price of NuScale Class A stock continued to fall in subsequent days, dropping to a low of just $17 per share by November 21, 2025 – more than 70% below the class period high of more than $57 per share.
Plaintiff alleges that defendants failed to disclose that: (i) ENTRA1 had never built, financed, or operated any significant projects – let alone projects in the highly technical and complicated field of nuclear power generation – during its entire operating history; (ii) NuScale had entrusted its commercialization, distribution, and deployment of its NPMs and hundreds of millions of dollars of NuScale capital to an entity that lacked any significant prior experience owning, financing, or operating nuclear energy generation facilities; (iii) the purported experience and qualifications attributed to ENTRA1 by defendants during the class period in fact referred to the purported experience and qualifications of the principals of the Habboush Group, a distinct entity without significant experience in the field of nuclear power generation; and (iv) as a result, NuScale’s commercialization strategy was exposed to material, undisclosed risks of failure, delays, regulatory challenges, or other negative setbacks.