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As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) 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; (2) 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; (3) 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 (4) as a result, NuScale's commercialization strategy was exposed to material, undisclosed risks of failure, delays, regulatory challenges, or other negative setbacks.
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.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding NuScale's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the NuScale Power Corporation class action, go to www.faruqilaw.com/SMR or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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SOURCE Faruqi & Faruqi, LLP
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