NuScale Power Faces Securities Fraud Class Actions Over SMR Commercialization Partner
NuScale Power Corporation (NYSE: SMR) is facing multiple class-action lawsuits alleging securities fraud and misrepresentation of its primary commercialization partner, ENTRA1 Energy LLC. The lead case, Truedson v. NuScale Power Corporation, et al. (No. 3:26-cv-00328), pending in the U.S. District Court for the District of Oregon, alleges that NuScale misled investors regarding the capabilities and experience of ENTRA1 in developing and commercializing its small modular reactors (SMRs).
The legal issues stem from disclosures made on November 6, 2025, when NuScale reported a massive increase in Q3 2025 general and administrative expenses to $519 million, driven by a $495 million payment to ENTRA1. Under analyst pressure, NuScale admitted that ENTRA1 was not an experienced nuclear developer and would not actually build the power plants. A subsequent Guggenheim Securities report revealed that ENTRA1 was a three-year-old entity with only three employees and one investor (Wadie Habboush), serving primarily to support a single individual's activities. This news triggered a 12.4% stock drop over two trading days, from $32.46 to $28.43.
These legal troubles highlight the severe execution and commercialization risks associated with pre-revenue SMR developers. According to its latest financial statements, NuScale's trailing twelve-month revenue has plummeted 95.8% to $18.7 million, with an operating margin of -10,181%. While the company holds $341.1 million in cash, its stock has collapsed to $12.89 (just 8.4% of its 52-week high), reflecting deep investor skepticism over its commercialization pipeline.