Core Viewpoint - Fermi Inc. is facing a proposed securities class action due to allegations of misleading IPO materials and the abrupt termination of a significant agreement with its prospective anchor tenant for Project Matador, which has led to substantial investor losses [1][3][4]. Group 1: Company Overview - Fermi Inc. is a hyperscaler development company that recently completed its initial public offering (IPO) in October 2025, raising approximately $784 million by issuing over 37 million shares at $21 each [2][3]. - The company’s Project Matador is positioned as an advanced energy and intelligence campus aimed at supporting AI infrastructure [3]. Group 2: Legal Proceedings - A class action lawsuit, Lupia v. Fermi Inc., is being filed to represent investors who purchased shares during the class period from October 1, 2025, to December 11, 2025, following the IPO [2][3]. - The lawsuit claims that Fermi's IPO documents were misleading, particularly regarding tenant demand for Project Matador, which was marketed as a groundbreaking energy campus [3][4]. Group 3: Market Reaction - Following the announcement of the termination of the agreement with the First Tenant on December 11, 2025, Fermi's stock price plummeted by 33%, closing at $10.09, which is nearly 52% lower than the IPO price [4]. - The abrupt nature of the announcement and lack of explanation regarding the First Tenant's exit has raised concerns about the company's transparency [4].
Fermi Inc. (FRMI) Slapped With Securities Class Action Over IPO And Subsequent Disclosures -- Hagens Berman