A securities class action has been filed against Fermi Inc. (NASDAQ: FRMI), alleging the company made material misrepresentations regarding demand forecasts for its Project Matador AI data center during its initial public offering and in subsequent disclosures. The lawsuit also claims the company failed to adequately disclose risks associated with its primary tenant relationship, according to legal filings by Hagens Berman.
The litigation was triggered by the December 12, 2025 termination of a $150 million funding agreement with Fermi's primary tenant, an event that precipitated a significant decline in the company's equity value. Fermi's stock price fell 34% on the announcement date and has declined 59% from its $21 IPO price, reflecting the market's reassessment of the company's financial prospects and operational viability.
Investors who purchased Fermi securities during the relevant period have until March 6, 2026 to establish their claim as lead plaintiff in the class action. The case raises questions about disclosure adequacy during the company's IPO process and the extent to which material risks tied to major customer relationships were communicated to investors at the time of the offering.