Fermi Inc. (FRMI) Faces Class Action Over Misleading IPO Claims, 33.8% Stock Drop
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: PRnewswire
- Lawsuit Background: Hagens Berman is investigating whether Fermi Inc. (FRMI) misled investors during its October 2025 IPO by overstating tenant demand for its flagship 'Project Matador,' resulting in significant investor losses.
- Key Dates: Investors must apply to be lead plaintiff by March 6, 2026, covering the period from October 1 to December 11, 2025, during which the stock dropped 33.8% due to tenant exit.
- Project Risks: Fermi highlighted a $150 million construction agreement with its 'First Tenant' in IPO materials, but announced on December 12, 2025, that the agreement was terminated, prompting a reassessment of execution risks associated with the project.
- Market Reaction: Following the tenant's exit, Fermi's stock plummeted to $10.09 in a single day, over 50% below its IPO price of $21.00, raising serious concerns about the company's transparency and investor trust.
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.
