Fermi Inc. Faces Class Action After 33.8% Stock Drop Post-IPO Due to Tenant Termination
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 18h ago
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Source: Businesswire
- Stock Price Plunge: Fermi Inc. successfully went public on October 1, 2025, selling shares at $21.00 each, but saw a dramatic 33.8% drop to $10.09 on December 12, 2025, after the first tenant terminated a $150 million construction agreement, indicating severe market concerns about the company's future prospects.
- Investor Losses: By the time the lawsuit commenced, Fermi's stock had fallen to $8.59, representing a 59% decline from the IPO price, reflecting a significant erosion of investor confidence in the company's operations and future growth, potentially leading to a wave of legal actions from affected investors.
- Lawsuit Details: The class action alleges that Fermi made materially false and misleading statements in its Registration Statement, failing to disclose the reliance on a single tenant's funding commitment and the associated risks, which exacerbated investor losses and raised questions about the company's transparency.
- Legal Action Timeline: Investors must file a lead plaintiff motion by March 6, 2026, highlighting the potential for significant legal ramifications for Fermi and drawing attention to the company's reputation and future financing capabilities.
Analyst Views on FRMI
About FRMI
Fermi Inc. is an advanced energy and hyperscale development company purpose-built for the artificial intelligence (AI) era. The Company is engaged in the development of electric grids that deliver highly redundant power at a gigawatt scale, required to create artificial intelligence. Situated on a 5,236-acre site in Amarillo, Texas, Project Matador is secured by the Company pursuant to the Lease on land owned by the Texas Tech University System. Project Matador is designed to accommodate up to 6.0 gigawatt (GW) of nuclear capacity via 4.0 GW of bifurcated Westinghouse Reactors and 2.0 GW of small nuclear reactor (SMRs). Its HyperRedundant site is strategically located adjacent to natural gas fields in the United States that is within a high-radiance solar corridor, well-positioned for advanced nuclear development and supportive of multiple energy pathways including near-term natural gas power development.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
