Investigation Initiated by Robbins Geller into Fermi Inc. Over SEC Violations

Investigation into Fermi Inc. by Robbins Geller

On December 24, 2025, Robbins Geller Rudman & Dowd LLP announced an investigation into Fermi Inc. (NASDAQ: FRMI) regarding possible breaches of federal securities laws. This inquiry is centered on allegations that Fermi and specific executives may have made misleading statements or concealed critical information from investors.

Reason for the Investigation

Fermi, which has gained attention for developing a large electric generation campus aimed at supporting AI data centers, recently conducted an initial public offering (IPO) on September 30, 2025. The startup released approximately 32.5 million shares at an offering price of $21.00 each. Fermi's offering document stated that it had entered a letter of intent with an investment-grade tenant to lease a portion of its Project Matador site for 20 years, suggesting a promising start for the company.

In November 2025, further positive developments emerged when Fermi disclosed that this tenant had agreed to advance $150 million to fund construction costs—a clear indication of strong backing for the ongoing project.

However, the situation took a downturn when Fermi announced on December 12, 2025, that this tenant had decided to terminate the Advance in Aid of Construction Agreement (AICA). This abrupt cancellation raised significant concerns, especially as the tenant and Fermi were still negotiating the terms of a lease agreement.

Market Reaction and Consequences

The news had a dramatic impact on Fermi's stock price, causing it to plummet by over 33%, closing at $10.09 per share, a stark contrast to its initial offering price. This reaction highlights not only the volatility of the market but also the potential fallout from the company's inability to secure pivotal agreements. Investors who believed in the narrative of a solid growth trajectory were shaken by this news.

Robbins Geller: A Leader in Investor Protection

Robbins Geller Rudman & Dowd LLP is well established in the realm of securities fraud and shareholder litigation. The firm has consistently ranked as a leading legal entity dedicated to protecting investors, having recovered over $2.5 billion for its clients in securities class action cases throughout 2024 alone. Notably, the firm secured the largest monetary relief in history for investors in the infamous Enron case.

For Fermi investors feeling the weight of the recent debacle, Robbins Geller extends a helping hand, encouraging those who suffered losses or possess relevant information about the situation to reach out. Contacting attorneys J.C. Sanchez or Jennifer N. Caringal at Robbins Geller is encouraged through their office or via their dedicated website.

Conclusion

The ongoing legal scrutiny of Fermi Inc. emphasizes the vital need for transparency and accountability in the corporate landscape. As Robbins Geller leads the investigation, this situation serves as a reminder of the responsibilities companies hold toward their investors and the potential consequences of failing to uphold them. Whatever the outcome, the resolution will undoubtedly shape the company's future and the broader market's trust in its operations.