#USA #San Francisco #Hagens Berman #Project Matador #Fermi Inc.

Introduction

In a significant development for investors, national shareholder rights law firm Hagens Berman is currently investigating allegations against Fermi Inc. (FRMI), a publicly-traded company on NASDAQ, over potential misrepresentations related to its flagship project, known as Project Matador. This scrutiny comes in light of a recent class action lawsuit which highlights concerns regarding the company’s stability and operational promises.

Background on Fermi Inc.

Fermi Inc. has been gaining attention for its ambitious Project Matador, aimed at establishing a large-scale AI data center. However, recent events have cast doubts on the project's viability, particularly concerning its main anchor tenant. The controversy has escalated following an announcement made on December 12, 2025, wherein Fermi disclosed that its primary tenant had terminated a crucial $150 million Advance in Aid of Construction Agreement (AICA). This contract was meant to facilitate funding for construction costs associated with the data center, and its abrupt termination sent shockwaves through the market, subsequently leading to a nearly 34% drop in Fermi's stock price.

Allegations of Misrepresentation

The main thrust of the class action lawsuit is focused on allegations that Fermi and its executives provided misleading statements regarding the demand for Project Matador and the degree of risk associated with its anchor tenant. The lawsuit claims that Fermi presented an inflated picture of tenant demand in its IPO registration materials, which was used to attract investors and secure high valuation multiples. Furthermore, it is alleged that the company failed to adequately disclose the reliance on a single tenant's financial commitment for funding, posing a significant risk that was never communicated to investors.

Hagens Berman partner Reed Kathrein expressed concern that Fermi's IPO materials may not have accurately reflected the precarious state of tenant commitments, creating a false sense of security for potential investors seeking to capitalize on the growth opportunities presented by Project Matador.

Legal Proceedings and Next Steps

The lead plaintiff deadline for this class action is set for March 6, 2026, prompting Hagens Berman to call upon affected investors to come forward and discuss their experiences. Investors who acquired Fermi shares during the IPO in October 2025 or between October 1, 2025, and December 11, 2025, might have claims against the company and its executives if they faced losses due to the alleged misstatements.

In light of these revelations, Hagens Berman aims to provide a platform for those impacted to seek redress for their financial losses. Investors who have experienced losses or have information that could assist in this investigation are encouraged to reach out to the firm.

Importance of Investor Vigilance

This case underscores the critical importance of corporate accountability, particularly for companies operating in sectors like technology and infrastructure where large sums of investment are at stake. Investors should remain vigilant and informed about the operational risks that can impact their investments, especially in projects that promise high returns yet involve significant uncertainty.

Conclusion

As Hagens Berman continues its investigation into the allegations against Fermi Inc., the situation serves as a reminder of the potential risks tied to corporate investments. The unfolding legal proceedings could have far-reaching implications not only for Fermi and its stakeholders but also for the broader market sentiment towards similar companies in the technology sector. Investors are urged to monitor developments closely and consider consulting legal expertise if they find themselves affected by the recent revelations concerning Fermi Inc.