NuScale Power Faces Securities Fraud Lawsuit After 12% Stock Drop

BFA Law Urges Investors with Losses to Act Before April 20 Deadline

Mar. 3, 2026 at 12:15am

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A securities fraud class action has been filed against NuScale Power Corporation (NYSE:SMR) and certain of the Company's senior executives, alleging misrepresentations about ENTRA1 leading to a 12.4% stock plunge. Investors have until April 20, 2026 to ask the Court to be appointed to lead the case.

Why it matters

The lawsuit alleges that NuScale, a nuclear technology company, misrepresented the experience and capabilities of its partner ENTRA1, which was responsible for constructing power generation facilities incorporating NuScale's nuclear power modules. This alleged misconduct resulted in a significant stock drop for NuScale, impacting investors.

The details

The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in NuScale Class A common stock. According to the lawsuit, NuScale allegedly touted ENTRA1's purported wide-ranging capabilities and deep experience developing power plants, when in truth, ENTRA1 had never built, financed, or operated any significant project, let alone a project in the complex field of nuclear power generation.

  • On November 6, 2025, NuScale disclosed that its general and administrative expenses had increased from $17 million in the prior year period, to $519 million during 3Q 2025, due largely to NuScale's payment of $495 million to ENTRA1 for its services.
  • On November 6, 2025, NuScale acknowledged that ENTRA1 did not have any significant experience building nuclear power projects and admitted that ENTRA1 would not actually be 'out there building the power plants' but would serve 'to coordinate projects, to bring in partners, to get deals and the partners they bring in that can execute.'
  • Following this news, the price of NuScale stock dropped $4.03 per share over two trading days, or more than 12.4%, from a closing price of $32.46 per share on November 6, 2025, to $28.43 per share on November 10, 2025.

The players

NuScale Power Corporation

A nuclear technology company whose core technology is the NuScale Power Module ('NPM'), a small modular nuclear reactor ('SMR') designed to generate energy within a broader power plant.

ENTRA1 Energy LLC

A company that was responsible for constructing power generation facilities incorporating NuScale's NPMs and managing the financing, development, and initial operations of the facilities utilizing the NPMs.

Wadie Habboush

The principal of ENTRA1, who is described as an investor and entrepreneur.

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What they’re saying

“ENTRA1 is a '3-year old company that has never built, financed or operated anything' and had just '3 employees and 1 investor,' and stated a 'more accurate description of ENTRA1 would be that it is an entity supporting the activities of a single individual, specifically Mr. Habboush.'”

— Guggenheim Securities, LLC, Analyst

What’s next

The judge in the case will decide on whether to allow the class action lawsuit to proceed.

The takeaway

This case highlights the importance of accurate and transparent disclosures by public companies, as well as the potential consequences for investors when such disclosures are allegedly misleading. It also underscores the role of securities fraud class actions in holding companies accountable for potential violations of federal securities laws.