NuScale Power Securities Fraud Lawsuit

NuScale Power, a nuclear technology company, is facing a securities fraud class action lawsuit filed by Bleichmar Fonti & Auld LLP. The lawsuit alleges that NuScale Power and its executives misrepresented the experience and capabilities of its partner, ENTRA1 Energy LLC, in developing and commercializing NuScale Power's small modular nuclear reactors. It is claimed that ENTRA1 Energy LLC, despite being touted as an experienced platform, had no significant prior experience in nuclear power generation and was primarily organized to support its principal, Wadie Habboush. This alleged misconduct came to light after NuScale Power disclosed a significant increase in general and administrative expenses, largely due to a $495 million payment to ENTRA1 Energy LLC, and subsequently acknowledged ENTRA1 Energy LLC's limited role. A report by Guggenheim Partners further detailed ENTRA1 Energy LLC's lack of experience, leading to a 12.4% drop in NuScale Power's stock price. The lawsuit is pending in the United States — United States District Court for the Northern District of California, with a lead plaintiff deadline of April 20, 2026.