Portland Nuclear Power Startup NuScale hit with Investor Lawsuit
NuScale recently terminated its collaboration with Utah power systems, resulting in the cancellation of plans to build the first small modular nuclear reactors in the United States at the Idaho National Laboratory. This decision arose due to escalating interest rates and inflation, halting a project that could have brought nuclear power to 16 states. Investors responded by taking legal action, accusing NuScale of misleading them about the viability of a significant project intended to revolutionize nuclear power.
The company faces a class-action lawsuit alleging that it concealed crucial information about its business, operations, and prospects. Investors are seeking unspecified damages and interest to recover their losses. Despite multiple U.S. companies working on similar technology, NuScale stands out with the only small modular nuclear reactor design approved by the U.S. Nuclear Regulatory Commission. These reactors, known for their affordability and safety benefits compared to traditional plants, have capacities up to 300 megawatts, making them more flexible for future power demands.
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The lawsuit contends that NuScale failed to disclose the financial infeasibility of the Idaho project after struggling to secure adequate customers. Reports suggest discrepancies between NuScale’s statements to investors about progress and the actual market conditions, with claims that no new customers committed to buying nuclear power since March. Another flagged project involving two Standard Power data centers in Ohio and Pennsylvania appears dubious, with doubts raised about Standard Power’s actual electricity demand compared to NuScale’s assertions.
NuScale rebutted these allegations as baseless attacks aimed at manipulating the company’s stock price. Their spokesperson labeled the plaintiffs as recurrent litigators and vowed to defend the company vigorously.
Despite these legal challenges, NuScale’s stock has plunged by 60% since August, signaling a period of uncertainty and turbulence for the company.
Source – https://www.opb.org/
