NuScale Power Corporation (SMR) Misled Investors Regarding its Business Prospects
A shareholder filed a class action lawsuit on behalf of persons and entities that purchased or otherwise acquired NuScale Power Corporation (NYSE: SMR) securities between March 15, 2023 and November 8, 2023. NuScale is a nuclear power company that develops small modular reactor (“SMR”) technology. It claims that its SMRs will “deliver safe, scalable, cost-effective and reliable carbon-free power.”
According to the complaint, on October 19, 2023, Iceberg Research issued a report contradicting NuScale’s claims that it could fulfill two large contracts: (1) a contract with the Utah Associated Municipal Power Systems (“UAMPS”) for its Carbon Free Power Project (“CFPP”), and (2) a contract with Standard Power, a company providing data center services for businesses focusing on blockchain mining and high performance computing applications. On November 8, 2023, NuScale and UAMPS announced they had mutually agreed to terminate the CFPP contract because they had failed to engage enough subscribers. After these reports, NuScale’s share price declined, harming investors.
Plaintiff alleges that during the class period, defendants failed to disclose that: (1) because of the effect of inflationary pressures on the cost of construction and power, the Company and UAMPS would be unable to sign up enough subscribers to fulfill the CFPP; (2) Standard Power did not have the financial ability to support its agreement with NuScale; and (3) as a result, defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
What Now: Similarly situated shareholders may be eligible to participate in the class action against NuScale Power Corporation. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. Plaintiffs must file their lead plaintiff papers by January 16, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.