Small modular nuclear reactor developer NuScale Power, rocked by collapse of its only project and hammered by a freefall in its share prices, is facing another major threat. Boston-based law firm Block & Leviton announced Monday (Nov. 27) that it has filed a âclass-action shareholder lawsuit in federal court, alleging the company âmade materially false and/or misleading statements and failed to disclose material adverse facts about the Companyâs business, operations, and prospects.ââ
Those who have followed NuScale closely have known that the companyâs deal with the Utah Associated Municipal Power Systems (UAMPS) was in trouble well before its cancellation announced Nov. 8. Just before UAMPS walked out of the deal to supply six 77-MW small modular reactors to serve cities in 16 western states, NuScale announced a deal with a company trying to develop data centers for crypto currency mining operations. That deal generated more skepticism about Oregon-based NuScale, as the announcement contained no financial details and did not generate an 8k filing at the Securities and Exchange Commission.
The suit in U.S. District Court for the District of Oregon (Case 3:2023cv01689) was initially bought Nov. 15 by investor Scott Sigman against current and former NuScale officers John Hopkins, Chris Colbert, Robert Hamady and Clayton Scott. Hopkins is CEO, Hamady is NuScale chief financial officer, and Scott is chief commercial officer. Colbert was CFO before he left the company in August.
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