NuScale Power Stock Falls 1.86% as $300M Volume Ranks 438th Amid Securities Lawsuits Over ENTRA1 Partnership

Market Snapshot

On February 25, 2026, NuScale Power (SMR) closed with a 1.86% decline, trading at a volume of $0.30 billion. This ranked the stock 438th in terms of trading activity for the day, reflecting moderate investor engagement amid ongoing legal and operational uncertainties. The decline, while not as severe as the 12%–19.97% drops observed in November 2025, underscores lingering market skepticism following revelations about the company’s partnership with ENTRA1 Energy LLC.

Key Drivers Behind the Decline

NuScale’s recent stock performance is primarily linked to a series of high-profile securities lawsuits and operational red flags that emerged in late 2025. At the core of the legal scrutiny is the company’s partnership with ENTRA1 Energy LLC, a firm NuScale allegedly misrepresented as a seasoned developer of power plants. According to multiple class action complaints, NuScale promoted ENTRA1 as an “independent power plant development platform” led by “energy, infrastructure, and finance sector veterans,” despite the firm having no prior experience in nuclear power generation or large-scale infrastructure projects. This mischaracterization formed the basis for allegations of securities fraud under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

The financial fallout from this partnership became apparent on November 6, 2025, when NuScale disclosed a 3,000% surge in general and administrative expenses, from $17 million in the prior year to $519 million during the third quarter of 2025. The vast majority of this increase—$495 million—was attributed to payments to ENTRA1 under a contract tied to the Tennessee Valley Authority (TVA) agreement. This revelation triggered a sharp drop in NuScale’s stock price, falling 19.97% over two trading sessions to $30.34 per share. Analysts highlighted the inexperience of ENTRA1, noting it had never built, financed, or operated a significant project, let alone one in the complex nuclear energy sector.

The legal and financial risks associated with ENTRA1 were further compounded by NuScale’s admission that the TVA agreement could require milestone payments exceeding $3 billion. This revelation raised questions about the company’s financial sustainability and governance practices, particularly given its reliance on a partner with no proven track record in the industry. The lawsuits filed by multiple law firms—including Bleichmar Fonti & Auld LLP, Pomerantz LLP, and the Gross Law Firm—argue that NuScale’s failure to disclose these risks constituted material misstatements that misled investors.

The ongoing class action lawsuits, consolidated under the lead case Truedson v. NuScale Power Corporation (No. 3:26-cv-00328), have intensified investor concerns. The complaints allege that NuScale’s leadership, including its CEO, knowingly participated in a scheme to inflate the company’s prospects by leveraging ENTRA1’s perceived credibility. With an April 20, 2026, deadline for investors to seek lead plaintiff status, the litigation is expected to remain a focal point for the stock’s near-term trajectory.

While NuScale’s core technology—the NuScale Power Module (NPM)—remains a key differentiator in the small modular reactor (SMR) market, the company’s credibility has been severely damaged by the ENTRA1 controversy. The lawsuits highlight a broader issue of governance and transparency in the nuclear energy sector, where high capital expenditures and long development timelines amplify the risks of strategic missteps. For NuScale, the path forward will depend on resolving the legal challenges, restructuring its partnerships, and rebuilding investor confidence—a daunting task given the magnitude of the alleged misconduct and financial exposure.