NuScale Power Securities Fraud Class Action Focuses on ENTRA1 Issues; BFA Law Alerts Investors to April 20 Court Deadline

Leading securities law firm Bleichmar Fonti & Auld LLP said it has filed a class action lawsuit against NuScale Power Corporation (NYSE:SMR) and certain senior executives, alleging securities fraud following a sharp decline in the company’s stock.

Key details of the NuScale class action

• Lead plaintiff deadline: April 20, 2026
• Alleged misconduct: Misrepresenting the experience and capabilities of ENTRA1 and its role in developing and commercializing NuScale’s nuclear power modules
• Largest alleged stock decline: November 10, 2025 — 12.4% stock drop
• Court: U.S. District Court for the District of Oregon
• Case caption: Truedson v. NuScale Power Corporation, et al., No. 3:26-cv-00328

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. Investors have until April 20, 2026 to ask the court to be appointed to lead the case.

Background: NuScale’s ENTRA1 partnership and the allegations

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

Before the start of the class period, NuScale established a partnership with ENTRA1 Energy LLC. Under the agreement, ENTRA1 was responsible for constructing power generation facilities incorporating NuScale’s NPMs and managing financing, development, and initial operations of those facilities.

According to the lawsuit, NuScale touted ENTRA1’s purported broad capabilities and experience developing power plants. The complaint alleges that NuScale described ENTRA1 as an independent power plant development platform led by an executive team of energy, infrastructure, and finance sector veterans, with experience NuScale said was needed to commercialize and deploy NuScale’s NPMs.

The filing alleges that ENTRA1, in fact, had not built, financed, or operated significant projects in nuclear power generation. It also alleges that ENTRA1 was organized primarily to support the work of a single individual, identified in the complaint as principal Wadie Habboush.

What the lawsuit says drove the stock drop

On November 6, 2025, NuScale disclosed that its general and administrative expenses increased from $17 million in the prior-year period to $519 million during 3Q 2025, largely due to a $495 million payment to ENTRA1 for services.

On the same date, the company acknowledged under pressure from investment analysts that ENTRA1 did not have significant experience building nuclear power projects. NuScale also stated that ENTRA1 would not be out building the power plants, but would instead coordinate projects, bring in partners, and help arrange deals with partners that would execute the work.

The complaint says analysts at Guggenheim Securities published a report describing ENTRA1 as a three-year-old company that had never built, financed, or operated anything, and that it had three employees and one investor. The report, as described in the lawsuit, characterized ENTRA1 as an entity supporting the activities of a single individual, specifically Mr. Habboush.

Following this news, the lawsuit alleges NuScale’s stock fell $4.03 per share over two trading days—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.

Potential investor actions and next steps

The firm said investors have until April 20, 2026 to seek appointment as lead plaintiff. It also said the matter is pending in the U.S. District Court for the District of Oregon.

Bleichmar Fonti & Auld LLP said its representation is on a contingency fee basis, with no cost to investors, and that shareholders are not responsible for court costs or litigation expenses. The firm said it will seek court approval for any potential fees and expenses.

Contact

Adam McCall
adam@bfalaw.com
212.789.3619