NuScale Power Faces Securities Fraud Class Action Lawsuit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 03 2026
0mins
Should l Buy SMR?
Source: PRnewswire
- Lawsuit Background: Kessler Topaz Meltzer & Check, LLP has filed a securities fraud class action against NuScale Power Corporation on behalf of investors who purchased Class A common stock between May 13 and November 6, 2025, highlighting serious concerns over the company's financial transparency.
- Financial Crisis: In Q3 2025, NuScale reported a staggering 3,000% increase in general and administrative expenses to $519 million, primarily due to a $495 million payment to ENTRA1, resulting in a quarterly net loss soaring to $532 million, indicating significant mismanagement of finances.
- Stock Price Plunge: Following the financial report, NuScale's Class A common stock price dropped 14.4% from $37.91 on November 5, 2025, to $32.46, reflecting strong market concerns about the company's future prospects and potentially undermining investor confidence.
- Investor Action: Affected investors can seek to be appointed as lead plaintiffs in the class action by April 20, 2026, signaling a focus on corporate governance and financial transparency, which may influence future legal and financial outcomes.
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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: 11.990
Low
18.50
Averages
32.77
High
60.00
Current: 11.990
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: Potential and Risks of Small Modular Reactors
- Massive Market Opportunity: With a market capitalization of just $4 billion, NuScale Power operates in a nuclear energy sector projected to become a $10 trillion opportunity, highlighting significant potential for investment returns.
- Innovation Driven: In 2023, NuScale Power received the first-ever approval from the U.S. Nuclear Regulatory Commission for its SMR design, marking a pivotal moment that could provide more efficient power solutions for the AI sector.
- Intensifying Competition: While NuScale Power leads in SMR design approvals, other large industrial firms are heavily investing in competing designs, indicating that market competition will intensify, necessitating careful risk assessment by investors.
- Risks and Rewards: Although NuScale Power presents opportunities for aggressive growth investors, the technology remains unproven at scale, suggesting that the potential for high returns comes with equally high risks, requiring investors to be well-prepared.
See More
NuScale Power Faces Securities Fraud Class Action Lawsuit
- Lawsuit Background: Kessler Topaz Meltzer & Check LLP has filed a securities fraud class action against NuScale Power on behalf of investors who purchased Class A common stock between May 13, 2025, and November 6, 2025, raising serious concerns about the company's financial transparency.
- Financial Crisis: NuScale reported a staggering 3,000% increase in general and administrative expenses to $519 million in Q3 2025, primarily due to a $495 million payment to ENTRA1, resulting in a quarterly net loss soaring to $532 million, indicating a severe deterioration in the company's financial health.
- Stock Price Plunge: On November 6, 2025, NuScale's stock price dropped by $5.45, or approximately 14.4%, from $37.91 to $32.46, reflecting the market's pessimism regarding the company's future prospects following the financial report.
- Investor Action: Affected investors are encouraged to seek lead plaintiff status by April 20, 2026, highlighting a strong concern for corporate governance and financial transparency, which may influence future investment decisions.
See More
Nuclear Energy Market Potential Reaches $10 Trillion
- Nuclear Market Opportunity: A report from Bank of America indicates that nuclear energy is being 'rediscovered' amid surging electricity demand, with the potential to become a $10 trillion market, offering reliable baseload power and a smaller carbon footprint with higher energy return on investment.
- AI-Driven Electricity Demand: U.S. electricity demand is expected to grow by 4% annually through 2030, with the AI sector's share of demand increasing from 4.3% to 11.7%, driving the need for nuclear energy, particularly for power-hungry data centers.
- Attractive Valuation of Oklo: Despite a market cap drop to $9.5 billion due to a sharp correction, Oklo's valuation remains compelling compared to the $10 trillion opportunity projected by Bank of America, especially if its small modular reactor technology gains traction in the AI and tech industries.
- Risks and Opportunities: Oklo faces competition from firms like NuScale Power and potential uranium market tightening, yet its technology offers strategic advantages for providing quick, reliable power to AI data centers, making it a promising long-term investment despite inherent risks.
See More
Oklo's SMR Technology: A Potential Game Changer
- Rising Electricity Demand: U.S. electricity demand is projected to grow by approximately 4% annually through 2030, with the AI sector's share increasing from 4.3% to 11.7%, indicating significant market opportunities for Oklo.
- Nuclear Market Opportunity: A report from Bank of America suggests that nuclear energy could represent a $10 trillion opportunity, and if Oklo's small modular reactor technology is successful, it could yield substantial returns for investors despite facing competition and market risks.
- Technological Application Potential: Oklo's SMR technology is not only applicable to AI data centers but also serves remote communities and military installations, showcasing its broad market adaptability and long-term growth potential.
- Investment Risk Considerations: While Oklo presents significant market potential, its small size also entails financing risks, as it may require substantial capital in the future, potentially diluting existing shareholders and impacting overall profit potential.
See More
Multiple Companies Facing Class Action Lawsuits
- PayPal Lawsuit Overview: During the period from February 25, 2025, to February 2, 2026, PayPal is accused of overstating its business execution capabilities, misleading investors about its prospects, with a class action deadline of April 20, 2026.
- NuScale Power Risks: NuScale Power faces allegations of failing to disclose significant risks associated with its nuclear projects during the period from May 13, 2025, to November 6, 2025, with a class action deadline also set for April 20, 2026.
- Corcept Therapeutics Allegations: From October 31, 2024, to December 30, 2025, Corcept is accused of not disclosing FDA concerns regarding the effectiveness assessment of its drug, with a class action deadline of April 21, 2026.
- Navan, Inc. IPO Controversy: Navan is alleged to have failed to disclose a 39% increase in sales and marketing expenses during its IPO period in 2025, with a class action deadline of April 24, 2026.
See More
NuScale Power Faces Class Action Lawsuit for Securities Fraud
- Lawsuit Background: Bleichmar Fonti & Auld LLP has filed a class action lawsuit against NuScale Power and its executives for securities fraud, resulting in a significant stock drop of 12.4% on November 10, 2025, from $32.46 to $28.43, highlighting serious investor concerns regarding the company's financial transparency.
- Financial Misrepresentation: NuScale disclosed a staggering increase in general and administrative expenses from $17 million to $519 million in Q3 2025, primarily due to a $495 million payment to ENTRA1, raising red flags about the company's financial health and operational efficiency.
- False Claims of Experience: The lawsuit alleges that NuScale misrepresented ENTRA1's capabilities, claiming extensive experience in power plant development, while ENTRA1 was merely a support entity for a single investor, leading to a drastic loss of investor confidence in NuScale's business model.
- Legal Implications: Investors have until April 20, 2026, to apply to lead the case, which is pending in the U.S. District Court for the District of Oregon, and a favorable outcome could have profound implications for NuScale's future operations and shareholder rights.
See More
NuScale Power: Potential and Risks of Small Modular Reactors
- Massive Market Opportunity: With a market capitalization of just $4 billion, NuScale Power operates in a nuclear energy sector projected to become a $10 trillion opportunity, highlighting significant potential for investment returns.
- Innovation Driven: In 2023, NuScale Power received the first-ever approval from the U.S. Nuclear Regulatory Commission for its SMR design, marking a pivotal moment that could provide more efficient power solutions for the AI sector.
- Intensifying Competition: While NuScale Power leads in SMR design approvals, other large industrial firms are heavily investing in competing designs, indicating that market competition will intensify, necessitating careful risk assessment by investors.
- Risks and Rewards: Although NuScale Power presents opportunities for aggressive growth investors, the technology remains unproven at scale, suggesting that the potential for high returns comes with equally high risks, requiring investors to be well-prepared.
See More
NuScale Power Faces Securities Fraud Class Action Lawsuit
- Lawsuit Background: Kessler Topaz Meltzer & Check LLP has filed a securities fraud class action against NuScale Power on behalf of investors who purchased Class A common stock between May 13, 2025, and November 6, 2025, raising serious concerns about the company's financial transparency.
- Financial Crisis: NuScale reported a staggering 3,000% increase in general and administrative expenses to $519 million in Q3 2025, primarily due to a $495 million payment to ENTRA1, resulting in a quarterly net loss soaring to $532 million, indicating a severe deterioration in the company's financial health.
- Stock Price Plunge: On November 6, 2025, NuScale's stock price dropped by $5.45, or approximately 14.4%, from $37.91 to $32.46, reflecting the market's pessimism regarding the company's future prospects following the financial report.
- Investor Action: Affected investors are encouraged to seek lead plaintiff status by April 20, 2026, highlighting a strong concern for corporate governance and financial transparency, which may influence future investment decisions.
See More
Nuclear Energy Market Potential Reaches $10 Trillion
- Nuclear Market Opportunity: A report from Bank of America indicates that nuclear energy is being 'rediscovered' amid surging electricity demand, with the potential to become a $10 trillion market, offering reliable baseload power and a smaller carbon footprint with higher energy return on investment.
- AI-Driven Electricity Demand: U.S. electricity demand is expected to grow by 4% annually through 2030, with the AI sector's share of demand increasing from 4.3% to 11.7%, driving the need for nuclear energy, particularly for power-hungry data centers.
- Attractive Valuation of Oklo: Despite a market cap drop to $9.5 billion due to a sharp correction, Oklo's valuation remains compelling compared to the $10 trillion opportunity projected by Bank of America, especially if its small modular reactor technology gains traction in the AI and tech industries.
- Risks and Opportunities: Oklo faces competition from firms like NuScale Power and potential uranium market tightening, yet its technology offers strategic advantages for providing quick, reliable power to AI data centers, making it a promising long-term investment despite inherent risks.
See More
Oklo's SMR Technology: A Potential Game Changer
- Rising Electricity Demand: U.S. electricity demand is projected to grow by approximately 4% annually through 2030, with the AI sector's share increasing from 4.3% to 11.7%, indicating significant market opportunities for Oklo.
- Nuclear Market Opportunity: A report from Bank of America suggests that nuclear energy could represent a $10 trillion opportunity, and if Oklo's small modular reactor technology is successful, it could yield substantial returns for investors despite facing competition and market risks.
- Technological Application Potential: Oklo's SMR technology is not only applicable to AI data centers but also serves remote communities and military installations, showcasing its broad market adaptability and long-term growth potential.
- Investment Risk Considerations: While Oklo presents significant market potential, its small size also entails financing risks, as it may require substantial capital in the future, potentially diluting existing shareholders and impacting overall profit potential.
See More
Multiple Companies Facing Class Action Lawsuits
- PayPal Lawsuit Overview: During the period from February 25, 2025, to February 2, 2026, PayPal is accused of overstating its business execution capabilities, misleading investors about its prospects, with a class action deadline of April 20, 2026.
- NuScale Power Risks: NuScale Power faces allegations of failing to disclose significant risks associated with its nuclear projects during the period from May 13, 2025, to November 6, 2025, with a class action deadline also set for April 20, 2026.
- Corcept Therapeutics Allegations: From October 31, 2024, to December 30, 2025, Corcept is accused of not disclosing FDA concerns regarding the effectiveness assessment of its drug, with a class action deadline of April 21, 2026.
- Navan, Inc. IPO Controversy: Navan is alleged to have failed to disclose a 39% increase in sales and marketing expenses during its IPO period in 2025, with a class action deadline of April 24, 2026.
See More
NuScale Power Faces Class Action Lawsuit for Securities Fraud
- Lawsuit Background: Bleichmar Fonti & Auld LLP has filed a class action lawsuit against NuScale Power and its executives for securities fraud, resulting in a significant stock drop of 12.4% on November 10, 2025, from $32.46 to $28.43, highlighting serious investor concerns regarding the company's financial transparency.
- Financial Misrepresentation: NuScale disclosed a staggering increase in general and administrative expenses from $17 million to $519 million in Q3 2025, primarily due to a $495 million payment to ENTRA1, raising red flags about the company's financial health and operational efficiency.
- False Claims of Experience: The lawsuit alleges that NuScale misrepresented ENTRA1's capabilities, claiming extensive experience in power plant development, while ENTRA1 was merely a support entity for a single investor, leading to a drastic loss of investor confidence in NuScale's business model.
- Legal Implications: Investors have until April 20, 2026, to apply to lead the case, which is pending in the U.S. District Court for the District of Oregon, and a favorable outcome could have profound implications for NuScale's future operations and shareholder rights.
See More
