NuScale Power Faces Securities Fraud Allegations in Multiple Lawsuits

NuScale Power hit with class actions alleging it misled investors about a key partner's experience, triggering major stock declines in late 2025.

The modular nuclear reactor company NuScale Power is now the subject of several class action lawsuits alleging securities fraud. Legal filings submitted over the last two days claim the company made materially misleading statements concerning its commercialization strategy and a key partnership.

Legal Action Follows Stock Volatility and Soaring Costs

This legal scrutiny comes after a period of significant stock price volatility in late 2025. The company disclosed that its selling, general, and administrative expenses for the third quarter had surged to $519 million. A substantial portion of this figure, $495 million, was tied to an agreement with ENTRA1 Energy LLC.

Revelations about the ENTRA1 partnership and a separate agreement with the Tennessee Valley Authority (TVA) triggered sharp declines in NuScale's share price. The stock fell approximately 19% in total across trading sessions on November 6 and 7, 2025. A further drop of over 12% occurred on November 10, 2025.

For affected investors who purchased shares during the relevant class period, the deadline to file as a lead plaintiff is April 20, 2026. While NuScale continues to advance its reactor technology, this legal pressure is prompting increased scrutiny of its operational execution from institutional investors.

Core Allegations: Misrepresentation of Partner's Capabilities

Lawsuits filed at the U.S. District Court in Oregon form the basis of the allegations. They center on accusations that NuScale misrepresented the capabilities of its partner, ENTRA1 Energy LLC.

The plaintiffs contend that NuScale failed to disclose that ENTRA1 lacked any meaningful experience in constructing, financing, or operating nuclear power projects. According to the complaints, the commercialization of NuScale's reactor modules was entrusted to an entity without the requisite technical background.

Furthermore, the lawsuits allege that positive references NuScale attributed to its partner actually pertained to executives from a different corporate entity, the Habboush Group.