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

Fermi Inc. Experiences Significant Stock Decline

On December 12, 2025, shareholders of Fermi Inc. (NASDAQ: FRMI) experienced a dramatic drop in their investments when share prices fell by approximately 33%. This decline was triggered by the startling announcement that a major tenant, referred to as the 'First Tenant,' had canceled an agreement critical to the company's ambitious Project Matador. This project, billed as a state-of-the-art energy and intelligence campus at Texas Tech University, was expected to play a pivotal role in supporting next-generation AI infrastructure.

The news is particularly concerning as the First Tenant had committed to provide $150 million to help fund the development of Project Matador, a facility that aims to be a leader in the ongoing 'AI revolution.' The cancellation of such a significant financial agreement has led many to question the stability and future profitability of Fermi Inc. Just a few months prior, the company had successfully raised nearly $784 million in gross proceeds through a stock issuance, selling over 37 million shares at $21 each. However, the recent development has left investors unsettled, with share prices dropping to $10.09, nearly 52% lower than the price at which they went public just two months earlier.

The sudden announcement of the contract termination was made without any detailed explanation regarding the reasons behind it. This lack of clarity has prompted national shareholder rights law firm Hagens Berman to initiate an investigation into whether Fermi had misled its investors regarding the contract's strength with the First Tenant. Reed Kathrein, a partner at Hagens Berman, has expressed concern over the transparency of the company's communication about this significant agreement. The firm encourages any investors experiencing substantial losses to come forward with their concerns while also seeking information from anyone with knowledge pertinent to the investigation.

Just weeks before the contract termination, Fermi had assured shareholders of progress on Project Matador, claiming that they had executed a solid agreement with a creditworthy tenant. The abrupt shift in Fermi's situation begs the question of whether the company's previous assertions were overly optimistic or perhaps misleading.

As investigations unfold, the impact on investor sentiment could broaden, leading to further fluctuations in share price and potentially affecting business operations. The market's response indicates a high level of uncertainty surrounding Fermi's future, emphasizing the importance of accountability and transparency in corporate communication.

Investors are advised to stay informed as updates about this investigation are released. It remains critical for those who have invested in Fermi Inc. to evaluate their portfolios and consider their options should the investigation lead to findings suggestive of corporate negligence or misrepresentation.

For those interested in following the developments or participating in the investigation, Hagens Berman has provided various contact options for investors and whistleblowers, emphasizing their commitment to securing justice for those affected by the situation. Their dedication to corporate accountability and protection of investors' interests underscores the vital role of legal recourse in corporate matters.

In summary, the fallout from the tenant contract cancellation has raised significant questions about Fermi Inc.'s operations, financial health, and transparency in dealing with investors. The coming weeks will be crucial as more information is revealed and as investors navigate this challenging landscape. Investors are encouraged to approach news of corporate performance with due diligence, especially in sensitive developments such as these.