Fermi Inc. (FRMI) Slapped With Securities Class Action Over IPO And Subsequent Disclosures -- Hagens Berman
SAN FRANCISCO, Jan. 06, 2026 (GLOBE NEWSWIRE) -- Hyperscaler development company Fermi Inc. (NASDAQ: FRMI) is facing a proposed securities class action stemming from its highly anticipated initial public offering completed just weeks before stunning the investment community with its December announcement that the prospective anchor tenant (“First Tenant”) for the company’s Project Matador (the company’s Advanced Energy and Intelligence Campus at Texas Tech University) terminated an agreement that would have advanced $150 million to help fund construction.
Hagens Berman is investigating the alleged claims that Fermi IPO materials were misleading and urges investors in Fermi who suffered significant losses to submit your losses now.
Class Period: Oct. 1, 2025 – Dec. 11, 2025
Lead Plaintiff Deadline: Mar. 6, 2026
Visit: www.hbsslaw.com/investor-fraud/frmi
Contact the Firm Now: FRMI@hbsslaw.com
844-916-0895
Fermi Inc. (FRMI) Securities Class Action:
The lawsuit, styled Lupia v. Fermi Inc., et al., No. 1:26-cv-00050 (S.D.N.Y.) seeks to represent investors who purchased or otherwise acquired Fermi shares pursuant or traceable to the company’s October 2025 IPO and those investors who acquired Fermi shares on the open market between October 1, 2025 and December 11, 2025. The offering saw Fermi issue over 37 million shares at $21 apiece for total gross proceeds of about $784 million.
The litigation centers on claims that Fermi’s IPO documents and subsequent disclosures were misleading because, among other things, the company overstated tenant demand for Project Matador which Fermi billed as a multi-gigawatt energy and data center development campus designed to support the accelerating needs of to-be-built AI infrastructure and “a first-of-its-kind energy campus to be built to power the AI revolution.”
Investor’ expectations were dashed on December 12, 2025. That day, Fermi abruptly announced that “[o]n December 11, 2025, the First Tenant notified the Company that it is terminating the AICA[.]” The company did not explain the reasons for First Tenant’s exit.
The markets swiftly reacted, sending the price of Fermi shares crashing 33% lower that day. The December 12 closing price of $10.09 was nearly 52% below Fermi’s October IPO price.
“We’re focused on whether, during and after Fermi’s IPO, the company has been sufficiently transparent about tenant demand for Project Matador and the strength and terms of the agreements with Tenant 1,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation of the alleged claims.
If you invested in Fermi and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Fermi investigation, read more »
Whistleblowers: Persons with non-public information regarding Fermi should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email FRMI@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
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