New Scale Power (SMR), faces potential class-action lawsuits amid technological expansion... Institutions "short-selling bets"

The American small modular reactor (SMR) company NuScale Power has achieved results in expanding technological cooperation and strengthening its supply chain, while collective lawsuits from investors and management liability disputes have also emerged, leading to differing market opinions.

Recently, legal risks surrounding NuScale Power have rapidly spread, centered around the American law firm SUEWALLST. The firm is urging institutional investors to conduct a “fiduciary duty review” and claims that the CEO and CFO may need to bear personal responsibility for shareholder losses. In particular, the firm has encouraged participation in collective lawsuits with a deadline of March 13, 2026, heightening investor anxiety.

This trend aligns with market concerns about NuScale Power’s business structure and performance trends. The company stated that despite an annual revenue of $31.5 million in 2025, a decrease from the previous year, it has secured $1.3 billion (approximately 1.872 trillion KRW) in cash and investment assets by the end of the year, enhancing its liquidity. Additionally, the company is focusing on ensuring financial stability by raising funds through a $75 million stock issuance.

In terms of business, the company continues to pursue aggressive expansion. It is expanding its collaboration with French nuclear firm Framatome to build a nuclear fuel supply chain covering Europe and the U.S., with plans to produce at least 444 fuel assemblies starting in 2030. This initiative is advancing for NuScale Power’s first U.S. customer project.

The company is also accelerating the enhancement of its technological competitiveness. It is collaborating with Oak Ridge National Laboratory to develop AI-based nuclear fuel management technology, aimed at simultaneously improving the operational efficiency of the reactor based on 12 modules and reducing costs. Additionally, through a strategic collaboration with Ivara Elliott Energy, it has begun commercializing a high-temperature steam production system applicable to petrochemical plants, with a target to complete a commercial compressor by 2027.

However, market analysis suggests that despite positive technological progress, legal risks may have a more significant impact on short-term stock prices. In fact, a 2x inverse ETF based on NuScale Power has emerged, indicating that institutions and traders have acquired shorting tools, reflecting investor sentiment.

On the other hand, Fluor Corporation (FLR) has significantly sold its holdings in NuScale, raising $1.35 billion (approximately 1.944 trillion KRW) and has indicated further sales, which is also seen as a market burden factor. Fluor has cumulatively recovered approximately $2 billion in cash.

Currently, the market is weighing the balance between NuScale Power’s “technological growth potential” and “legal uncertainty.” Although the potential of the SMR industry remains valid, mainstream evaluations suggest that without restoring investor confidence, short-term stock price volatility will be inevitable.