NuScale Power Faces Class Action Lawsuit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy SMR?
Source: Globenewswire
- Lawsuit Background: A class action lawsuit has been filed in the U.S. District Court for Oregon on behalf of all investors who purchased NuScale Power (NYSE: SMR) securities between May 13 and November 6, 2025, alleging significant undisclosed risks.
- Concealed Facts: The complaint alleges that NuScale entrusted its commercialization and deployment to ENTRA1, which lacked experience in nuclear projects, exposing investors to undisclosed risks of failure and delays.
- Lack of Experience: It further claims that the qualifications attributed to ENTRA1 were actually those of the Habboush Group, which also lacks substantial experience in nuclear energy, exacerbating the risks associated with NuScale's commercialization strategy.
- Investor Rights: Investors are urged to contact Gainey McKenna & Egleston by April 20, 2026, to act as lead plaintiffs in the class action, ensuring their rights are protected.
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Analyst Views on SMR
Wall Street analysts forecast SMR stock price to rise
13 Analyst Rating
5 Buy
6 Hold
2 Sell
Hold
Current: 14.200
Low
18.50
Averages
32.77
High
60.00
Current: 14.200
Low
18.50
Averages
32.77
High
60.00
About SMR
NuScale Power Corporation is a provider of proprietary advanced small modular reactor nuclear technology. The NuScale Power Module, the Company's SMR technology, is a small pressurized water reactor that can generate 77 megawatts of electricity (MWe) or 250 megawatts thermal (gross) and can be scaled to meet customer needs through an array of flexible configurations of up to 924 MWe (12 modules) of output. In addition to the sale of NPMs, it offers a diversified suite of services throughout the development and operating life of the power plant. The Company's suite of services is planned to include licensing support, testing, training, fuel supply services and program management, among others. It serves a range of customers consisting of governments, political subdivisions, state-owned enterprises, investor-owned utilities and other technology and industrial companies, both in domestic and international markets.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Nuclear Market Opportunity: NuScale Power holds the unique position of being the only company with a U.S. Nuclear Regulatory Commission-approved small modular reactor (SMR) design, capable of expanding to 12 modules generating 924 megawatts of carbon-free electricity; however, its stock has declined nearly 40% over the past year, indicating potential long-term investment challenges.
- Major Agreement Signed: The Tennessee Valley Authority has signed an agreement with NuScale for up to 6 gigawatts of new nuclear capacity, marking the largest SMR agreement to date, sufficient to power approximately 60 data centers, yet the stringent regulations in the nuclear industry may delay any significant financial returns for years.
- Slow Project Progress: NuScale has been planning a six-module plant in Romania since 2021, and although the customer recently approved the first module, commercial operations are not expected to commence until July 2033, causing investor concerns regarding the timeline and viability of the project.
- Uncertain Market Outlook: While the global SMR market is projected to grow to $8.2 billion by 2035, NuScale's current market capitalization stands at $4.3 billion with trailing twelve-month revenues of only $64 million, and the absence of near-term commercial deployments further diminishes investor confidence in the stock.
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- Lawsuit Background: A class action lawsuit has been filed in the U.S. District Court for Oregon on behalf of all investors who purchased NuScale Power (NYSE: SMR) securities between May 13 and November 6, 2025, alleging significant undisclosed risks.
- Concealed Facts: The complaint alleges that NuScale entrusted its commercialization and deployment to ENTRA1, which lacked experience in nuclear projects, exposing investors to undisclosed risks of failure and delays.
- Lack of Experience: It further claims that the qualifications attributed to ENTRA1 were actually those of the Habboush Group, which also lacks substantial experience in nuclear energy, exacerbating the risks associated with NuScale's commercialization strategy.
- Investor Rights: Investors are urged to contact Gainey McKenna & Egleston by April 20, 2026, to act as lead plaintiffs in the class action, ensuring their rights are protected.
See More
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- Defensive Investment Strategy: Utility stocks like Duke Energy have risen over 10% year-to-date, with a 3.3% dividend yield and an 18x forward P/E ratio, making them ideal for investors seeking safety amid market volatility while also participating in the AI revolution's power dynamics.
- Future Market Outlook: Although 2026 may face short-term volatility, historical data indicates that markets typically achieve a 100% probability of gains in the second year, with an average return of 27%, encouraging investors to seek growth opportunities in the current environment.
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- Class Action Initiated: NuScale Power Corporation is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934 during the period from May 13 to November 6, 2025, with investors having until April 20, 2026, to seek lead plaintiff status, indicating significant legal risks for the company.
- Financial Loss Surge: In Q3 2025, NuScale's general and administrative expenses skyrocketed over 3,000% to $519 million, primarily due to a $495 million payment to ENTRA1, resulting in a quarterly net loss of $532 million, reflecting a drastic deterioration in the company's financial health.
- Partner Qualification Concerns: The lawsuit alleges that NuScale's reliance on ENTRA1 for commercialization of its core technology is misplaced, as ENTRA1 lacks any significant project experience in nuclear energy, which could have long-term implications for NuScale's business model and market trust.
- Stock Price Volatility: Following the financial disclosures on November 6, 2025, NuScale's stock price fell over 12% within two days, indicating increasing investor concerns about the company's future prospects, which may impact its ability to raise funds and maintain market competitiveness.
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