Fermi Inc. Faces Class Action Lawsuit for Securities Fraud After 33% Stock Drop
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Globenewswire
- Lawsuit Background: Fermi Inc. is facing a class action lawsuit for alleged violations of federal securities laws involving senior executives and underwriters, highlighting serious investor concerns regarding the company's transparency.
- Stock Price Plunge: On December 12, 2025, Fermi's stock dropped by $5.16, over 33%, from $15.25 to $10.09 after the First Tenant terminated the construction agreement, directly impacting investor confidence.
- Project Controversy: Fermi claimed in its IPO to have secured a 20-year lease with an investment-grade tenant, but the actual demand was overstated, leading to diminished investor trust in Project Matador and potential challenges in future financing.
- Legal Implications: Investors must apply by March 6, 2026, to lead the case; if successful, the lawsuit could result in significant damages for Fermi, further affecting its market performance and shareholder interests.
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.
