Case Summary

NuScale

NYSE: SMR

Case Details

  • Sigman v. NuScale Power Corporation, et al.
  • Class Period:March 15, 2023 - November 08, 2023
  • Date Filed:November 15, 2023
  • Jurisdiction:U.S. District Court, District Court of Oregon
  • Docket Number: 3:23-cv-01689
  • Lead Plaintiff Deadline: January 16, 2024
Days Left to
Seek Plaintiff
43

Overview

A class action lawsuit captioned Sigman v. NuScale Power Corporation, et al., has been filed against NuScale Power Corporation (“NuScale” or the “Company”) (NYSE: SMR) and certain of the Company’s top executive officers alleging that they violated the federal securities laws.  The lawsuit seeks to represent all persons and entities who purchased or otherwise acquired NuScale Power Corporation securities between March 15, 2023, and November 8, 2023, inclusive (the “Class Period”).

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[1]free power.” NuScale has not yet commercialized any SMRs.

On the morning of October 19, 2023, Iceberg Research issued a research report that contradicted NuScale’s claims that it would be able to 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 October 19, 2023, the Company’s share price fell $0.61 per share, or 12.0%, to close at $4.46 per share, on unusually high trading volume. Then on November 8, 2023, NuScale and UAMPS announced that they had mutually agreed to terminate the CFPP contract because they had failed to engage enough subscribers. On this news, the Company’s share price fell $1.02 per share, or 32.9%, to close at $2.08 per share on November 9, 2023, on unusually high trading volume.

The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, it is alleged that Defendants misled investors by failing to disclose that (1) due to the impact 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.

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If you purchased or otherwise acquired NuScale securities between March 15, 2023, and November 8, 2023, inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the NuScale lawsuit is January 15, 2024.

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