#USA #Class Action #San Francisco #Project Matador #Fermi Inc

Fermi Inc. Faces Class Action Lawsuit Over IPO Disclosures

Fermi Inc., traded on NASDAQ under the symbol FRMI, has recently come under scrutiny following a proposed securities class action lawsuit. This lawsuit is primarily related to the disclosures made during and after the initial public offering (IPO) of the company, which had garnered substantial interest within the investment community prior to its launch.

Overview of the Class Action

The legal action, named Lupia v. Fermi Inc., et al., filed in the Southern District of New York, seeks to represent investors who bought shares during the IPO held in October 2025, as well as those who acquired shares on the open market until December 11, 2025. The lawsuit alleges that Fermi misrepresented critical information regarding tenant demand for its ambitious Project Matador. This project is intended to be an advanced energy and intelligence campus at Texas Tech University.

During the IPO, Fermi issued more than 37 million shares at a price of $21 each, amassing approximately $784 million in gross proceeds. However, the anticipated excitement faced a significant setback shortly after the IPO when the prospective anchor tenant, referred to as the First Tenant, unexpectedly terminated the agreement that was supposed to advance $150 million for the project's construction.

Misleading Information Claims

The crux of the allegations lies in claims that Fermi's IPO materials created a misleading portrayal of tenant interest and demand for Project Matador, which Fermi had marketed as a groundbreaking facility aimed at supporting the burgeoning requirements for AI infrastructure. On December 12, 2025, the firm announced the termination of the tenant agreement without providing clear reasons, leading to an immediate and severe market reaction—Fermi's stock plummeted by 33%, closing at $10.09, representing nearly a 52% drop from its IPO price.

Reed Kathrein, a partner at Hagens Berman leading the investigation, emphasized the importance of transparency in corporate dealings, particularly during the IPO process. He stated, "Our focus is on whether Fermi was clear about the actual demand for Project Matador and the strength of the agreements with its potential tenants."

Implications for Investors

Investors who purchased shares during the class period and faced financial losses are being encouraged to come forward. Hagens Berman is actively collecting submissions from affected investors as part of their effort to address these alleged discrepancies and restore accountability. For those who may have information relevant to this investigation or have experienced losses, the firm advises they reach out to discuss potential next steps.

Whistleblower Options

Furthermore, individuals with insider information regarding Fermi are encouraged to consider participating in the SEC Whistleblower Program, which may offer rewards up to 30% of any successful recovery secured by the SEC, thereby incentivizing transparency and justice within corporate practices.

About Hagens Berman

Hagens Berman is a notable law firm specializing in representing plaintiffs in corporate accountability cases. With a substantial track record exceeding $2.9 billion in recoveries, the firm advocates for individuals seeking reparations for corporate misconduct. For more updates about their cases or to follow the progress of the Fermi investigation, investors can visit their website or follow Hagens Berman on social media.

In conclusion, as Fermi Inc. navigates this legal challenge, the outcome may hold significant implications not only for the firm but also for investor trust in IPO processes and corporate disclosures moving forward.