Fermi Faces Securities Class Action Over Alleged $150M Anchor Tenant Exit

Hagens Berman Investigating Claims of Misrepresented Demand for AI Data Center Project

Mar. 1, 2026 at 6:55pm by Ben Kaplan

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National shareholder rights law firm Hagens Berman is investigating claims that Fermi Inc. (NASDAQ: FRMI) misrepresented the demand for its flagship "Project Matador" AI data center campus and the stability of its primary anchor tenant. The complaint alleges that Fermi's misstatements were revealed on Dec. 12, 2025, when the company disclosed that the first tenant for Project Matador had terminated a $150 million construction funding agreement, causing Fermi's stock price to plummet nearly 34%.

Why it matters

The lawsuit alleges that Fermi overstated the demand for its Project Matador facility and concealed the risks associated with relying on a single anchor tenant to finance the construction, which ultimately led to a significant stock price decline when the tenant terminated its funding commitment.

The details

The pending litigation alleges that Fermi's IPO registration statement inflated the actual demand for Project Matador's multi-gigawatt capacity to attract high-valuation multiples, and that the company misrepresented and omitted to disclose the extent to which Project Matador would rely on a single tenant's funding commitment to finance the construction, as well as the significant risk that the tenant would terminate its funding commitment.

  • On December 12, 2025, Fermi announced that the First Tenant had terminated the $150 million Advance in Aid of Construction Agreement (AICA) after the exclusivity period expired.
  • Following this announcement, Fermi's stock price plummeted 33.8% in a single day.
  • By the commencement of the Fermi class action lawsuit, the price of Fermi stock has traded as low as $8.59 per share, a 59% decline from the $21.00 per share IPO price.

The players

Fermi Inc.

A company that is facing a securities class action lawsuit over alleged misrepresentations related to its flagship "Project Matador" AI data center campus.

Reed Kathrein

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

Hagens Berman

A national shareholder rights law firm that is issuing an updated notice to investors in Fermi Inc. regarding the March 6, 2026, lead plaintiff deadline in the pending securities class action.

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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 (PRNewswire)

What’s next

The Lead Plaintiff Deadline is March 6, 2026. Hagens Berman is advising investors who purchased FRMI shares pursuant and/or traceable to the October 2025 IPO, or on the open market between Oct. 1, 2025 – Dec. 11, 2025, to contact the firm to report their losses.

The takeaway

This case highlights the importance of scrutinizing companies' public disclosures, particularly around major infrastructure projects and reliance on anchor tenants, to ensure investors have an accurate understanding of the underlying business fundamentals and risks.