Hagens Berman Investigating Lawsuit Against Fermi Over Alleged $150M Anchor Tenant Exit

Law firm scrutinizing claims of misrepresentation about demand for Fermi's flagship AI data center project

Published on Feb. 12, 2026

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National shareholder rights law firm Hagens Berman is investigating a securities class action lawsuit against Fermi Inc. (NASDAQ: FRMI) and its executives over alleged misrepresentations about the demand for Fermi's flagship "Project Matador" AI data center campus and the stability of its primary anchor tenant. The lawsuit alleges that Fermi's IPO materials overstated tenant demand and concealed risks around the $150 million construction funding agreement with the anchor tenant, which was later terminated, leading to a 33.8% stock price plunge.

Why it matters

The case highlights concerns about companies potentially overstating demand and concealing risks in IPO materials to secure financing, which can leave investors vulnerable when the true situation is revealed. The termination of the anchor tenant's $150 million construction funding agreement for Fermi's key project raises questions about the company's viability and the accuracy of its public disclosures.

The details

The lawsuit alleges that Fermi's IPO registration statement inflated the actual demand for Project Matador's multi-gigawatt capacity to attract high-valuation multiples, and misrepresented and omitted the extent to which the project relied on a single tenant's funding commitment to finance construction. On Dec. 12, 2025, Fermi announced that the first tenant for Project Matador had terminated the $150 million Advance in Aid of Construction Agreement (AICA), causing Fermi's stock price to plummet 33.8% in a single day.

  • On October 1, 2025, Fermi went public with its IPO.
  • Between October 1, 2025 and December 11, 2025, the class period for the lawsuit.
  • On December 12, 2025, Fermi announced the $150 million AICA termination by its anchor tenant.

The players

Fermi Inc.

A technology company that was developing a massive AI data center campus called "Project Matador".

Reed Kathrein

The Hagens Berman partner leading the firm's investigation of the alleged claims against Fermi.

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What they’re saying

“We are investigating whether Fermi's IPO materials painted an artificial picture of demand to secure financing from investors.”

— Reed Kathrein, Hagens Berman partner

What’s next

The lead plaintiff deadline for the Fermi securities class action lawsuit is March 6, 2026. Hagens Berman is advising investors who purchased Fermi shares during the class period to contact the firm to discuss their options.

The takeaway

This case highlights the importance of scrutinizing companies' public disclosures, especially around major projects and financing, to ensure investors are not misled about the true state of the business. The termination of Fermi's anchor tenant agreement raises concerns about the company's viability and the accuracy of its representations to the public.