NuScale Power Sued for Securities Fraud After Stock Drop

Class action alleges executives misled investors about ENTRA1 issues, leading to 12% plunge

Mar. 31, 2026 at 11:20am

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A securities fraud class action lawsuit has been filed against NuScale Power executives, alleging they made misrepresentations about the company's ENTRA1 technology that led to a 12.4% drop in the stock price.

Why it matters

NuScale is a prominent player in the small modular nuclear reactor (SMR) industry, and this lawsuit could have significant implications for the company's reputation and future prospects if the allegations are proven true.

The details

The lawsuit, filed by Bleichmar Fonti & Auld LLP, claims that NuScale executives made false and misleading statements about the ENTRA1 technology, which is a key component of the company's SMR design. The plaintiffs allege that the executives knew about issues with ENTRA1 but failed to disclose them, leading to an artificial inflation of the stock price. When the problems with ENTRA1 were eventually revealed, the stock price plummeted by 12.4%.

  • The lawsuit was filed on March 31, 2026.

The players

NuScale Power

A leading developer of small modular nuclear reactor (SMR) technology.

Bleichmar Fonti & Auld LLP

A prominent securities law firm that filed the class action lawsuit against NuScale.

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What they’re saying

“We must hold NuScale accountable for their alleged misrepresentations about ENTRA1, which have had a significant impact on investors.”

— Javier Bleichmar, Partner, Bleichmar Fonti & Auld LLP

What’s next

The court will determine whether to certify the class action lawsuit in the coming months.

The takeaway

This lawsuit highlights the importance of transparency and accurate disclosures in the highly regulated nuclear energy industry, where even minor technical issues can have major financial implications for investors.