Fermi Inc. Faces Class Action Lawsuit Post-IPO as Stock Drops 59%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
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Source: PRnewswire
- Class Action Initiation: Fermi Inc. is facing a class action lawsuit due to alleged false statements and undisclosed risks following its October 2025 IPO, with investors having until March 6, 2026, to apply as lead plaintiffs, highlighting the severity of the legal risks the company faces.
- IPO Details: Fermi sold 37,375,000 shares at $21.00 each during its IPO; however, the stock price plummeted nearly 34% in December 2025 after a major tenant terminated a $150 million construction agreement, indicating a lack of market confidence in its business model.
- Stock Price Collapse: The lawsuit claims Fermi's stock has fallen to $8.59 from its IPO price, representing a 59% decline, which not only undermines investor confidence but may also complicate the company's future financing efforts, exacerbating its financial pressures.
- Legal Consequences: This lawsuit could result in substantial financial liabilities for Fermi, and an unfavorable ruling may have long-term negative implications for its operations and market reputation, necessitating close monitoring of subsequent developments.
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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.
