The legal scrutiny follows a September 11 downgrade by UBS, which shifted its rating on NuScale from neutral to sell. Analyst Jon Windham cited the erosion of the company’s first-mover advantage, pointing to agile competitors gaining ground in the nuclear sector. UBS underscored significant operational hurdles, including a five-year construction timeline and a glaring shortage of firm customer commitments. Furthermore, the report projected negative free cash flow totaling $700 million through 2028.
NuScale Power faces class action investigation following stock slide
A 15.67% single-day collapse in NuScale Power Corporation shares has triggered a formal investigation by Pomerantz LLP. The inquiry centers on potential securities fraud and whether company leadership misled investors regarding the firm’s competitive standing and the financial viability of its small modular reactor projects.
Investors are now being scrutinized for potential losses linked to stagnating progress on the RoPower project in Romania and the Tennessee Valley Authority partnership. Shares plummeted to $8.61 following the UBS report, prompting Pomerantz LLP to invite affected shareholders to participate in a potential class action. The firm, which specializes in corporate and securities litigation, is currently vetting claims of fiduciary breaches and corporate misconduct.
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