Faruqi & Faruqi Reminds Fermi Investors of Securities Class Action Deadline

Investors who suffered losses in Fermi encouraged to contact law firm directly to discuss options

Published on Feb. 20, 2026

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Faruqi & Faruqi, LLP, a national securities law firm, is investigating potential claims against Fermi Inc. (NASDAQ: FRMI) and reminds investors of the March 6, 2026 deadline to seek the role of lead plaintiff in a federal securities class action filed against the company. The complaint alleges Fermi made false and/or misleading statements about its tenant demand, funding commitments, and construction plans for its Project Matador campus.

Why it matters

This case highlights the importance of transparency and accuracy in public company disclosures, especially around major projects and funding arrangements that can significantly impact a company's financial outlook. Investors rely on this information to make informed decisions, and any misrepresentations can lead to substantial losses.

The details

The class action lawsuit alleges that Fermi overstated the tenant demand for its Project Matador campus, the extent to which it would rely on a single tenant's funding commitment to finance construction, and the risk that the tenant would terminate that funding commitment. On December 12, 2025, Fermi disclosed that the 'First Tenant' had terminated a $150 million advance agreement, eliminating a key funding source for the project. This news caused Fermi's stock price to fall more than 33% to $10.09 per share, well below the $21 IPO price.

  • Fermi completed its IPO on October 1, 2025, offering approximately 32.5 million shares at $21 per share.
  • On September 19, 2025, Fermi entered into a letter of intent with the 'First Tenant' to lease a portion of the Project Matador site.
  • In November 2025, Fermi announced the First Tenant had agreed, subject to conditions, to advance up to $150 million toward construction costs.
  • On December 12, 2025, Fermi disclosed the First Tenant had terminated the $150 million advance agreement the prior day.

The players

Faruqi & Faruqi, LLP

A leading national securities law firm that is investigating potential claims against Fermi and representing investors in the class action lawsuit.

James (Josh) Wilson

A securities litigation partner at Faruqi & Faruqi who is encouraging investors who suffered losses in Fermi to contact him directly to discuss their options.

Fermi Inc.

A company that completed its initial public offering in October 2025 and is developing the Project Matador campus for AI data centers.

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What they’re saying

“If you purchased or otherwise acquired securities in Fermi (a) common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the "Registration Statement") issued in connection with the Company's October 2025 initial public offering ("IPO" or the "Offering"); and/or (b) securities between October 1, 2025 and December 11, 2025, inclusive (the "Class Period") and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).”

— James (Josh) Wilson, Securities Litigation Partner, Faruqi & Faruqi, LLP (Newsfilecorp)

What’s next

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The takeaway

This case highlights the importance of transparency and accuracy in public company disclosures, especially around major projects and funding arrangements that can significantly impact a company's financial outlook. Investors rely on this information to make informed decisions, and any misrepresentations can lead to substantial losses.