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NuScale Power Corporation Investors Have Important Class Action Opportunity

In a notable legal development, Robbins Geller Rudman & Dowd LLP has announced that investors in NuScale Power Corporation (NYSE: SMR) who purchased Class A common stock from May 13, 2025, to November 6, 2025, may have the opportunity to lead a class action lawsuit. This lawsuit, titled Truedson v. NuScale Power Corporation, has significant implications for shareholders who incurred substantial financial losses during this period.

Understanding the Class Action Suit

The lawsuit alleges violations of the Securities Exchange Act of 1934 by NuScale and its top executives, alleging that the company made misleading statements about its partnerships and the commercialization of its technology. Investors have until April 20, 2026, to seek appointment as lead plaintiff in this case, which highlights the potential ramifications for both NuScale and its investors.

Key Allegations Against NuScale

NuScale is known for developing the NuScale Power Module (NPM), a small modular nuclear reactor aimed at transforming energy generation. A prior partnership with ENTRA1 Energy LLC was touted as a significant milestone for NuScale, believed to propel their technology from development to practical deployment. However, the lawsuit contends that claims made during the Class Period about ENTRA1’s capabilities were grossly inflated or entirely false. Significant points of contention include:

1. Experience of ENTRA1: ENTRA1 had no history of successfully building or operating projects in nuclear power — an assertion that directly undermines the credibility of NuScale's claims.
2. Financial Discrepancies: The lawsuit reveals that NuScale's general and administrative costs surged by over 3,000% in the last quarter of 2025, surpassing $519 million. Contributing factors included a substantial payment to ENTRA1 stemming from their partnership with the Tennessee Valley Authority, which raised concerns over fiscal responsibility.
3. Misleading Investor Communication: During a conference call following these revelations, NuScale’s CEO, John L. Hopkins, acknowledged that the agreement with TVA involved an audacious commitment of potentially up to 72 NPMs, risking over $3 billion in milestone payments to ENTRA1 without adequate assurance of their operational capacity.

These disclosures resulted in a sharp 12% decline in NuScale's share price, reflecting investor panic and dissatisfaction with the unfolding situation.

The Role of the Lead Plaintiff

According to the Private Securities Litigation Reform Act of 1995, any investor who bought NuScale’s Class A shares during the designated period can apply to be the lead plaintiff. This position is typically filled by an investor with a significant financial stake who can effectively represent the interests of all investors involved in the class action.

The lead plaintiff will manage how the lawsuit proceeds and can select legal representation of their choosing, though all investors stand to benefit from any recovery achieved through the lawsuit, regardless of their role in leading the case.

About Robbins Geller

Robbins Geller Rudman & Dowd LLP is recognized as one of the foremost legal firms dealing with securities fraud and shareholder rights. The firm has consistently ranked high in securing recoveries for investors, having recovered over $8.4 billion over the past five years alone. Its attorneys are adept at navigating complex securities litigation, which positions them well to advocate for NuScale investors seeking redress.

In conclusion, shareholders of NuScale Power Corporation are encouraged to assess their involvement during the class period critically and consider the opportunity to lead the class action lawsuit. Given the substantiated allegations of misleading financial disclosures, interested investors should contact Robbins Geller to explore their eligibility and potential next steps forward.