NuScale Power Faces Securities Fraud Class Action Over ENTRA1 Claims

Lawsuit alleges misrepresentations about ENTRA1's experience led to 12.4% stock drop

Apr. 10, 2026 at 10:59am

Got story updates? Submit your updates here. ›

A polished metal model of a small modular nuclear reactor floating on a clean, monochromatic background, symbolizing the complex corporate strategy and financial risks in the nuclear power industry.A photorealistic studio still life captures the abstract financial and regulatory risks surrounding the development of new nuclear power technologies.NYC Today

A securities fraud class action has been filed against NuScale Power Corporation and certain executives, alleging the company misrepresented the experience and capabilities of its partner ENTRA1 Energy LLC, leading to a significant stock decline.

Why it matters

The lawsuit highlights concerns over transparency and accountability in the nuclear power industry, where new technologies like small modular reactors are being developed and commercialized. Investors are closely watching how companies like NuScale communicate about their partnerships and business operations.

The details

The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act, alleging NuScale misrepresented ENTRA1's wide-ranging capabilities and deep experience in developing power plants. In reality, ENTRA1 was a 3-year-old company with just 3 employees and 1 investor, and had never built, financed or operated any significant project, let alone in the complex nuclear power field.

  • On November 6, 2025, NuScale disclosed a $495 million payment to ENTRA1 for its services.
  • On November 10, 2025, NuScale's stock dropped 12.4% over two trading days following this news.

The players

NuScale Power Corporation

A nuclear technology company developing small modular nuclear reactors.

ENTRA1 Energy LLC

A 3-year-old company with limited experience that was responsible for constructing power generation facilities incorporating NuScale's technology.

Wadie Habboush

The principal of ENTRA1 and an investor and entrepreneur.

Got photos? Submit your photos here. ›

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, Investment Analysts

What’s next

Investors have until April 20, 2026 to ask the U.S. District Court for the District of Oregon to be appointed to lead the case.

The takeaway

This case highlights the importance of transparency and accurate disclosures by companies developing new energy technologies, especially in the complex nuclear power industry, where investors are closely scrutinizing partnerships and business operations.