#United States #New York #John Hopkins #NuScale Power #Robert Hamady

Legal Accountability for NuScale Power Executives

NuScale Power Corporation is currently at the center of a securities class action lawsuit that has caught the attention of investors and the legal community alike. The firm Levi & Korsinsky, LLP has formally notified shareholders about this pressing issue, focusing on the potential personal liabilities faced by the company's CEO, John L. Hopkins, and CFO, Robert Ramsey Hamady.

As many investors know, shares of NuScale Power, which trades under the stock symbol SMR on the NYSE, have plummeted from over $57 during a high period to just $17. This astonishing drop of more than 70% has raised serious questions regarding the figures and statements made by the company, particularly relating to its exclusive commercialization partner, ENTRA1 Energy LLC. Investors now find themselves in a precarious position as they consider whether they might be eligible to recoup their losses from these executives.

Who is Involved?

The two executives named in this legal action have been integral to NuScale's operations. John L. Hopkins has been with the company since December 2012, serving as both CEO and a Board member. Robert Hamady took the role of CFO in August 2023. The allegations assert that these individuals played a pivotal role in crafting, reviewing, and disseminating misleading statements regarding ENTRA1's experience and capabilities in the nuclear power sector.

The Allegations

The lawsuit hinges on a crucial aspect of the Securities Exchange Act of 1934, invoking Section 20(a), which focuses on control person liability. According to the complaint, both executives were not only directly involved in public communications but also held authoritative control over NuScale's filings with the SEC, press releases, and investor conference calls throughout a critical period from May 13, 2025, to November 6, 2025.

Some of the individual allegations against Hopkins and Hamady include:

• - Misleading SEC Filings: They are accused of controlling the content of key SEC documents, such as the 1Q25 Form 10-Q and the September 2025 Form 8-K, which incorporated the company’s strategic agreements with ENTRA1.
• - Misrepresentation on Calls: They allegedly hosted quarterly calls during which they made materially misleading statements concerning ENTRA1’s qualifications as a nuclear developer.
• - Omitting Critical Information: They had access to information that highlighted ENTRA1's lack of operational history but failed to amend prior misleading announcements.
• - Failure to Rectify Misstatements: After committing huge sums towards milestone payments under the partnership agreement, they did not correct earlier misleading assertions about ENTRA1.

The Legal Framework

The Sarbanes-Oxley Act has stringent requirements for corporate executives. Both Hopkins and Hamady personally certified the accuracy of ongoing SEC filings, acknowledging their critical responsibility to ensure that these documents do not contain false information. Their failure to uphold these standards could lead to significant personal consequences.

Joseph E. Levi, an attorney at Levi & Korsinsky, remarked, "Corporate officers must guarantee the accuracy of their companies’ public statements. When executives personally certify SEC filings and engage in investor calls making significant representations, they assume individual liability for those communications."

Next Steps for Investors

The class action against NuScale highlights not only the precarious position of its executives but also sheds light on the broader issues of corporate governance and accountability in public companies. With the court setting a deadline of April 20, 2026, for shareholders to apply for lead plaintiff appointments, investors may want to consider their options carefully. This suit serves as a stark reminder of the importance of transparency and integrity within corporate leadership. Investors can reach out to Levi & Korsinsky to learn more about their potential eligibility for recovery.

As the case unfolds, it will certainly be one to watch in the financial and legal arenas, illustrating the depths of accountability corporate leaders must adhere to in light of their duties to shareholders and the market.