Core Viewpoint - A class action lawsuit has been filed against Fermi Inc. on behalf of investors who purchased shares during its IPO and within a specified class period, alleging that the company made materially false and misleading statements regarding its business operations and prospects [1][5]. Group 1: IPO and Stock Performance - Fermi conducted its IPO on October 1, 2025, selling 37,375,000 shares at a price of $21.00 per share [3]. - Following the announcement of a significant tenant termination related to its Project Matador AI campus, Fermi's stock price dropped by $5.16, or 33.8%, closing at $10.09 on December 12, 2025 [4]. - The stock has traded as low as $8.59 per share, representing a 59% decline from the IPO price [4]. Group 2: Allegations in the Lawsuit - The lawsuit alleges that Fermi's Registration Statement contained materially false and misleading statements and failed to disclose adverse facts about the company's operations [5]. - Specific allegations include overstating tenant demand for the Project Matador campus and failing to disclose the reliance on a single tenant's funding commitment, which posed a significant risk of termination [5]. - The lawsuit claims that the positive statements made by the company lacked a reasonable basis due to these undisclosed risks [5].
Law Offices of Howard G. Smith Encourages Fermi Inc. (FRMI) Shareholders To Inquire About Securities Fraud Class Action