Fermi Inc. Faces Class Action Lawsuit Post-IPO as Stock Drops 34%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Businesswire
- Class Action Initiation: Fermi Inc. is facing a class action lawsuit due to alleged violations of securities laws related to its October 2025 IPO, with investors having until March 6, 2026, to apply as lead plaintiffs, indicating potential reputational risks for the company.
- IPO Details Disclosed: Fermi sold 37.375 million shares at $21 each during its IPO, but the lawsuit claims false statements in the offering documents, which could undermine investor confidence and affect future capital raising efforts.
- Stock Price Volatility: Following the December 12, 2025 announcement that the first tenant for Project Matador terminated a $150 million construction agreement, Fermi's stock plummeted nearly 34%, dropping to $8.59 per share, reflecting market concerns about the company's viability and project funding.
- Law Firm Background: Robbins Geller Rudman & Dowd LLP, a leading firm in securities fraud and shareholder litigation, recovered over $2.5 billion for investors in 2024, showcasing its significant expertise and influence in handling such cases, which may bolster the lawsuit's credibility and potential outcomes.
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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.
