NuScale Power Faces Class Action Lawsuit Over Securities Violations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 10 2026
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Should l Buy SMR?
Source: PRnewswire
- Class Action Initiated: NuScale Power Corporation is facing a class action lawsuit for alleged violations of the Securities Exchange Act during the trading period from May 13 to November 6, 2025, with investors needing to apply as lead plaintiffs by April 20, 2026, highlighting significant legal risks for the company.
- Soaring Financial Losses: In Q3 2025, NuScale's general and administrative expenses surged over 3,000% to $519 million, primarily due to a $495 million payment to ENTRA1, resulting in a quarterly net loss skyrocketing to $532 million, indicating a drastic deterioration in the company's financial health.
- Commercialization Partnership Risks: The lawsuit alleges that NuScale's reliance on ENTRA1 as an exclusive commercialization partner is problematic, given ENTRA1's lack of experience in nuclear energy projects, which could jeopardize NuScale's commercialization strategy and future market competitiveness.
- Stock Price Volatility: Following the financial disclosures on November 6, 2025, NuScale's stock price fell over 12% within two days, reflecting a decline in investor confidence regarding the company's financial transparency and management capabilities, potentially impacting future financing and market performance.
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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: 10.990
Low
18.50
Averages
32.77
High
60.00
Current: 10.990
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.
NuScale Power Faces Class Action Lawsuit Over Securities Violations
- Class Action Initiated: NuScale Power Corporation is facing a class action lawsuit for alleged violations of the Securities Exchange Act during the trading period from May 13 to November 6, 2025, with investors having until April 20, 2026, to apply as lead plaintiffs, highlighting significant investor concerns regarding corporate governance and transparency.
- Financial Losses Exposed: The lawsuit alleges that NuScale's general and administrative expenses surged over 3,000% to $519 million in Q3, primarily due to a $495 million payment to ENTRA1, resulting in a quarterly net loss skyrocketing to $532 million, indicating a severe deterioration in the company's financial health.
- Technology Partnership Risks: The global commercialization partnership with ENTRA1 is under scrutiny as ENTRA1 lacks operational experience in the nuclear energy sector, raising investor concerns about the feasibility of NuScale's commercialization strategy and potential delays or regulatory challenges for future projects.
- Stock Price Volatility: Following the financial disclosures on November 6, 2025, NuScale's stock price plummeted over 12% within two days, reflecting a pessimistic market sentiment regarding the company's future prospects and severely undermining investor confidence.
See More
NuScale Power Faces Securities Fraud Class Action Lawsuit
- Lawsuit Background: NuScale Power Corporation (NYSE: SMR) is facing a class action lawsuit for securities fraud, alleging significant misstatements regarding its commercialization strategy for nuclear projects during the period from May 13 to November 6, 2025, with a deadline of April 20, 2026, for investors to seek lead plaintiff status.
- Financial Crisis: On November 6, 2025, NuScale revealed a shocking increase in general and administrative expenses by over 3,000% to $519 million in Q3, resulting in a quarterly net loss of $532 million, a substantial rise from $46 million the previous year, which directly impacted investor confidence and stock performance.
- Stock Price Volatility: Following the financial crisis announcement, NuScale's Class A common stock price dropped by $5.45, or approximately 14.4%, from a closing price of $37.91 on November 5, 2025, to $32.46 on November 6, indicating market concerns about the company's future viability.
- Investor Action: Affected investors are encouraged to contact Kessler Topaz Meltzer & Check, LLP for a free legal consultation, with all representation on a contingency fee basis, aimed at assisting investors in recovering their losses through the ongoing litigation process.
See More
Multiple Companies Face Class Action Lawsuits
- PayPal Lawsuit Overview: PayPal Holdings, Inc. is facing allegations of overstating its business execution capabilities during the period from February 25, 2025, to February 2, 2026, which may mislead investors about the company's prospects and negatively impact stock prices and investor confidence.
- NuScale Risk Disclosure: NuScale Power Corporation is accused of failing to disclose significant risks associated with its nuclear energy projects during the period from May 13, 2025, to November 6, 2025, potentially exposing its commercialization strategy to failures and regulatory challenges, which could hinder future growth.
- Corcept FDA Concerns: Corcept Therapeutics Incorporated is alleged to have not disclosed FDA concerns regarding the adequacy of its drug effectiveness assessment from October 31, 2024, to December 30, 2025, which may lead to significant obstacles in future drug applications and damage the company's reputation.
- Navan IPO Controversy: Navan, Inc. is accused of failing to disclose a 39% increase in sales and marketing expenses during its 2025 IPO, which could mislead investors about the company's financial health and affect its market performance.
See More
NuScale Power Faces Class Action Lawsuit for Securities Fraud
- Lawsuit Background: NuScale Power Corporation is facing a class action lawsuit for securities fraud, primarily accusing its executives of misrepresenting ENTRA1's capabilities, which led to a 12.4% stock drop on November 10, 2025, from $32.46 to $28.43, impacting investor confidence.
- Financial Mismanagement: In Q3 2025, NuScale's general and administrative expenses surged from $17 million to $519 million, largely due to a $495 million payment to ENTRA1 for services, indicating significant financial mismanagement that could affect future investment decisions.
- Market Reaction: Analysts highlighted that ENTRA1, a 3-year-old company, lacks experience in building nuclear projects, leading to a decline in investor trust in NuScale, further exacerbating stock volatility and reflecting market concerns over corporate governance and transparency.
- Legal Implications: Investors must apply by April 20, 2026, to be appointed as lead plaintiffs; if successful, this could pressure NuScale's management to improve governance and transparency to restore market confidence.
See More
NuScale Power Shares Plummet Amid Red Flags
- Stock Price Collapse: NuScale Power's shares have plummeted over 80% from above $50 last fall to the current price of $10.99, significantly undermining investor confidence and likely prompting many to adopt a wait-and-see approach rather than investing now.
- Market Capitalization Risks: With a market cap of $3.7 billion, NuScale faces increasing shareholder dilution risks, especially as the company seeks to double its authorized share count, which could further diminish existing shareholders' returns.
- Slow Commercialization Progress: Although NuScale has received certification from the U.S. Nuclear Regulatory Commission, its commercialization efforts remain incomplete, and the company is burning cash at an accelerating rate, creating uncertainty around its future profitability and market competitiveness.
- Intensifying Competition: As better-capitalized SMR companies emerge, NuScale risks losing market share, compounded by the fact that its major investor, Fluor, has begun selling off its stake, raising further concerns about the company's future prospects.
See More
NuScale Power Shares Plunge 80% Amid Concerns
- Significant Stock Decline: NuScale Power's shares have plummeted from over $50 last fall to just above $10 today, representing an 80% drop, indicating a substantial loss of investor confidence in its growth potential and necessitating careful evaluation of its investment appeal.
- Delayed Commercialization: Although NuScale has received certification from the U.S. Nuclear Regulatory Commission for its small modular reactor design, it has yet to fully enter the commercialization phase, and its partnership with Entra1 Energy has not significantly advanced market deployment, raising concerns about its future profitability.
- Shareholder Dilution Risk: The recent application to double its authorized share count poses a significant risk of shareholder dilution, and while there is optimism about the potential for a 5x to 10x increase in market cap, actual returns for shareholders may be adversely affected by this dilution.
- Intensifying Competition and Funding Issues: As better-capitalized small modular reactor companies emerge, NuScale faces increasing competitive pressure, compounded by its accelerating cash burn rate, leaving uncertainty about whether it will need to raise additional funds to support expansion and cover initial losses.
See More
NuScale Power Faces Class Action Lawsuit Over Securities Violations
- Class Action Initiated: NuScale Power Corporation is facing a class action lawsuit for alleged violations of the Securities Exchange Act during the trading period from May 13 to November 6, 2025, with investors having until April 20, 2026, to apply as lead plaintiffs, highlighting significant investor concerns regarding corporate governance and transparency.
- Financial Losses Exposed: The lawsuit alleges that NuScale's general and administrative expenses surged over 3,000% to $519 million in Q3, primarily due to a $495 million payment to ENTRA1, resulting in a quarterly net loss skyrocketing to $532 million, indicating a severe deterioration in the company's financial health.
- Technology Partnership Risks: The global commercialization partnership with ENTRA1 is under scrutiny as ENTRA1 lacks operational experience in the nuclear energy sector, raising investor concerns about the feasibility of NuScale's commercialization strategy and potential delays or regulatory challenges for future projects.
- Stock Price Volatility: Following the financial disclosures on November 6, 2025, NuScale's stock price plummeted over 12% within two days, reflecting a pessimistic market sentiment regarding the company's future prospects and severely undermining investor confidence.
See More
NuScale Power Faces Securities Fraud Class Action Lawsuit
- Lawsuit Background: NuScale Power Corporation (NYSE: SMR) is facing a class action lawsuit for securities fraud, alleging significant misstatements regarding its commercialization strategy for nuclear projects during the period from May 13 to November 6, 2025, with a deadline of April 20, 2026, for investors to seek lead plaintiff status.
- Financial Crisis: On November 6, 2025, NuScale revealed a shocking increase in general and administrative expenses by over 3,000% to $519 million in Q3, resulting in a quarterly net loss of $532 million, a substantial rise from $46 million the previous year, which directly impacted investor confidence and stock performance.
- Stock Price Volatility: Following the financial crisis announcement, NuScale's Class A common stock price dropped by $5.45, or approximately 14.4%, from a closing price of $37.91 on November 5, 2025, to $32.46 on November 6, indicating market concerns about the company's future viability.
- Investor Action: Affected investors are encouraged to contact Kessler Topaz Meltzer & Check, LLP for a free legal consultation, with all representation on a contingency fee basis, aimed at assisting investors in recovering their losses through the ongoing litigation process.
See More
Multiple Companies Face Class Action Lawsuits
- PayPal Lawsuit Overview: PayPal Holdings, Inc. is facing allegations of overstating its business execution capabilities during the period from February 25, 2025, to February 2, 2026, which may mislead investors about the company's prospects and negatively impact stock prices and investor confidence.
- NuScale Risk Disclosure: NuScale Power Corporation is accused of failing to disclose significant risks associated with its nuclear energy projects during the period from May 13, 2025, to November 6, 2025, potentially exposing its commercialization strategy to failures and regulatory challenges, which could hinder future growth.
- Corcept FDA Concerns: Corcept Therapeutics Incorporated is alleged to have not disclosed FDA concerns regarding the adequacy of its drug effectiveness assessment from October 31, 2024, to December 30, 2025, which may lead to significant obstacles in future drug applications and damage the company's reputation.
- Navan IPO Controversy: Navan, Inc. is accused of failing to disclose a 39% increase in sales and marketing expenses during its 2025 IPO, which could mislead investors about the company's financial health and affect its market performance.
See More
NuScale Power Faces Class Action Lawsuit for Securities Fraud
- Lawsuit Background: NuScale Power Corporation is facing a class action lawsuit for securities fraud, primarily accusing its executives of misrepresenting ENTRA1's capabilities, which led to a 12.4% stock drop on November 10, 2025, from $32.46 to $28.43, impacting investor confidence.
- Financial Mismanagement: In Q3 2025, NuScale's general and administrative expenses surged from $17 million to $519 million, largely due to a $495 million payment to ENTRA1 for services, indicating significant financial mismanagement that could affect future investment decisions.
- Market Reaction: Analysts highlighted that ENTRA1, a 3-year-old company, lacks experience in building nuclear projects, leading to a decline in investor trust in NuScale, further exacerbating stock volatility and reflecting market concerns over corporate governance and transparency.
- Legal Implications: Investors must apply by April 20, 2026, to be appointed as lead plaintiffs; if successful, this could pressure NuScale's management to improve governance and transparency to restore market confidence.
See More
NuScale Power Shares Plummet Amid Red Flags
- Stock Price Collapse: NuScale Power's shares have plummeted over 80% from above $50 last fall to the current price of $10.99, significantly undermining investor confidence and likely prompting many to adopt a wait-and-see approach rather than investing now.
- Market Capitalization Risks: With a market cap of $3.7 billion, NuScale faces increasing shareholder dilution risks, especially as the company seeks to double its authorized share count, which could further diminish existing shareholders' returns.
- Slow Commercialization Progress: Although NuScale has received certification from the U.S. Nuclear Regulatory Commission, its commercialization efforts remain incomplete, and the company is burning cash at an accelerating rate, creating uncertainty around its future profitability and market competitiveness.
- Intensifying Competition: As better-capitalized SMR companies emerge, NuScale risks losing market share, compounded by the fact that its major investor, Fluor, has begun selling off its stake, raising further concerns about the company's future prospects.
See More
NuScale Power Shares Plunge 80% Amid Concerns
- Significant Stock Decline: NuScale Power's shares have plummeted from over $50 last fall to just above $10 today, representing an 80% drop, indicating a substantial loss of investor confidence in its growth potential and necessitating careful evaluation of its investment appeal.
- Delayed Commercialization: Although NuScale has received certification from the U.S. Nuclear Regulatory Commission for its small modular reactor design, it has yet to fully enter the commercialization phase, and its partnership with Entra1 Energy has not significantly advanced market deployment, raising concerns about its future profitability.
- Shareholder Dilution Risk: The recent application to double its authorized share count poses a significant risk of shareholder dilution, and while there is optimism about the potential for a 5x to 10x increase in market cap, actual returns for shareholders may be adversely affected by this dilution.
- Intensifying Competition and Funding Issues: As better-capitalized small modular reactor companies emerge, NuScale faces increasing competitive pressure, compounded by its accelerating cash burn rate, leaving uncertainty about whether it will need to raise additional funds to support expansion and cover initial losses.
See More
