#USA #New York #Faruqi & Faruqi #Investors Rights #Fermi Inc

Legal Investigation Initiated by Faruqi & Faruqi, LLP for Fermi Investors

Faruqi & Faruqi, LLP, a respected name in the securities law sector, is currently exploring potential claims following the significant downturn in stock value for Fermi Inc. This investigation targets investors who sustained losses linked to their investments in Fermi securities, particularly concerning activities following the company’s October 2025 initial public offering (IPO).

Background of the Situation

Fermi Inc., traded on NASDAQ under the ticker FRMI, launched its IPO by offering approximately 32.5 million shares at $21.00 each. The registration statement circulated at the time emphasized ambitious plans for the development of an electric generation campus designed specifically for AI data centers, which incorporated a designated ‘First Tenant’ expected to play a pivotal role in financing the project.

However, just months later, on December 12, 2025, a critical announcement disclosed that this First Tenant had withdrawn from a crucial funding agreement, marking a catastrophic shift for the Project Matador initiative. Following this revelation, market confidence waned, leading to a dramatic plunge in Fermi’s stock price—dropping over 33% in a matter of days to close at $10.09 per share, significantly below the initial offering price.

Allegations of Misleading Information

Allegations against Fermi and its executives center on claims that they breached federal securities laws by disseminating misleading information and failing to disclose substantial risks inherent in their business model and project financing. Key points of contention include:
1. Overstating tenant demand for the Project Matador campus.
2. Insufficient disclosure regarding the reliance on a single tenant's funding, which represented a significant risk.
3. Misleading statements regarding the company’s operations and future prospects due to the lost funding commitment.

These issues raise serious concerns for investors, compelling a closer examination of Fermi's practices and communications leading up to the IPO and subsequent market actions.

Call to Action for Investors

James (Josh) Wilson, a partner at Faruqi & Faruqi, is directly inviting investors affected by these developments to reach out. Those who acquired Fermi’s securities between October 1, 2025, and December 11, 2025, are encouraged to discuss their legal rights and potential next steps. The firm is actively preparing a federal securities class action lawsuit against Fermi and is prepared to work diligently on behalf of affected investors.

The deadline to seek the role of lead plaintiff in this action is March 6, 2026, and participation in this role allows the individual to guide the direction of the litigation while ensuring their interests are represented throughout the proceedings.

Steps Moving Forward

Investors who believe they have a claim are urged to engage with Faruqi & Faruqi, whether as lead plaintiffs or individual class members. Inquiries can be made via direct contact to Wilson at 877-247-4292 or through their official website for more detailed information. Whistleblowers and individuals privy to Fermi's internal communications during this period are also encouraged to provide insight, as this can bolster the ongoing investigations and collective efforts of the firm.

Faruqi & Faruqi, LLP has established a reputation for securing substantial recoveries for investors since its inception in 1995, and their current inquiry into Fermi reflects their commitment to defending the rights of individual investors who have faced financial setbacks due to corporate mismanagement or unethical practices.

Stay informed on developments related to this investigation by following updates on social media platforms and their website. All interactions and information shared will be kept confidential, reflecting the firm's commitment to privacy and legal integrity.