#None #John Hopkins #NuScale Power #Robert Hamady

NuScale Power Corporation Executives Face Personal Liability in Ongoing Lawsuit

In a significant legal development, executives from NuScale Power Corporation (NYSE: SMR), including CEO John L. Hopkins and CFO Robert Ramsey Hamady, are named in a pending securities class action. This lawsuit, alerting investors about potential losses, centers on allegations that both Hopkins and Hamady are personally liable for misleading public statements regarding their exclusive commercialization partner, ENTRA1 Energy LLC.

Class Action Overview

The lawsuit claims that NuScale Power’s executives significantly misrepresented ENTRA1’s experience and capabilities in developing nuclear power plants, prompting a dramatic fall in NuScale's stock from above $57 to just $17, marking a staggering decline of over 70%. This plunge in stock value raises serious concerns for investors, leading to legal action seeking accountability and compensation for alleged losses. The court has established April 20, 2026, as the deadline for investors to apply for a lead plaintiff appointment in this case.

Allegations Against Individual Defendants

John L. Hopkins, who has held his position as Chief Executive Officer since December 2012, and Robert Ramsey Hamady, who became CFO in August 2023, are accused of participating directly in the preparation and distribution of misleading information regarding ENTRA1. According to the claim, both executives had crucial roles in disseminating statements that could be interpreted as deceptive regarding ENTRA1's qualifications and experience in nuclear energy development.

Control Person Liability Under Section 20(a)

The class action lawsuit asserts control person liability against Hopkins and Hamady under Section 20(a) of the Securities Exchange Act of 1934. This regulation holds companies and their executives accountable for the accuracy of publicly communicated statements, especially those made during investor calls and through official SEC filings.

The complaint highlights several critical areas where both individuals allegedly failed to meet their obligations:

• - They controlled the content of crucial SEC filings, including the quarterly Form 10-Q and Form 8-K, which included the Strategic Alliance Agreement with ENTRA1.
• - Both hosted investor calls during which they made materially misleading statements about ENTRA1’s qualifications.
• - They had prior knowledge of ENTRA1’s lack of operational history but failed to disclose this information, subsequently misleading investors.
• - They acknowledged the poor performance of their partner yet continued to tout their capabilities publicly.

Sarbanes-Oxley Act Certification

Under the stringent Sarbanes-Oxley Act, Hopkins and Hamady personally certified the accuracy of NuScale’s periodic SEC filings during the class period under scrutiny. The Act demands individual responsibility from corporate officers to ensure that disclosures are complete and not misleadingly accurate. Given their dual roles in leading the company and communicating with investors, they face the potential for significant personal liability.

Joseph E. Levi, Esq., representing the affected investors, asserts, “Corporate officers have a duty to ensure their companies' public statements are accurate and complete. When executives personally certify SEC filings and host investor calls where material representations are made, they bear individual responsibility for the accuracy of those communications.”

Implications for Investors

Investors affected by the drop in stock value due to these alleged misrepresentations have now been alerted to their rights to pursue recovery through this class action. Should a ruling favor the plaintiffs, it could set a precedent for executive accountability in corporate governance, especially in the energy sector.

As the case develops, investors seek clarity on whether they qualify for recovery against the accused executives for their significant financial losses. Interested individuals are encouraged to consult legal representation to explore their options.

In summary, the unfolding lawsuit against NuScale’s top leadership raises crucial questions about the responsibilities of corporate executives and the implications of their public discourse on investor confidence and market integrity. As April's deadline approaches, all eyes will be on the outcome of this pivotal legal battle.