1. Robbins Geller is investigating potential securities law violations by Fermi Inc. 2. Fermi's stock dropped over 33% following a termination notice from a key tenant. 3. The tenant's withdrawal could indicate deeper financial issues for Fermi. 4. Fermi's IPO was at $21 per share, now trading significantly lower. 5. Legal scrutiny might deter future investor confidence in Fermi Inc.
FAQ
Why Very Bearish?
The termination of the Advance in Aid of Construction Agreement severely undermines investor confidence, mirroring past cases like Enron where severe financial misstatements led to substantial losses.
How important is it?
The investigation could lead to significant regulatory actions affecting Fermi's operations and investor confidence, impacting stock price.
Why Short Term?
The immediate reaction in stock price indicates investor sentiment and potential ongoing volatility in the near future.
Robbins Geller Rudman & Dowd LLP Launches Investigation into Fermi Inc. (NASDAQ: FRMI)
On December 12, 2025, Robbins Geller Rudman & Dowd LLP announced an investigation into potential violations of U.S. federal securities laws involving Fermi Inc. (NASDAQ: FRMI). The firm is examining whether Fermi and certain executives made false statements or failed to disclose material information to investors. This investigation follows a significant drop in share price subsequent to a major announcement from the company.
Fermi Inc.: Company Overview and Recent Developments
Fermi Inc. is currently focused on developing a large electric generation campus dedicated to supporting artificial intelligence (AI) data centers. The company conducted its initial public offering (IPO) on September 30, 2025, issuing approximately 32.5 million shares at an offering price of $21.00 per share.
In its IPO documentation, Fermi stated that on September 19, 2025, it had entered into a letter of intent with a rated investment-grade tenant to lease a significant portion of its Project Matador site. This agreement included an initial lease term of twenty years, with four renewal terms of five years each. In November 2025, it was further reported that the tenant had signed an Advance in Aid of Construction Agreement (AICA) to advance up to $150 million for construction costs.
Impact of the Recent Announcement on Fermi's Stock
Fermi faced a major setback on December 11, 2025, when the First Tenant notified the company that it was terminating the AICA agreement. Despite ongoing negotiations regarding the lease terms for Project Matador, this revelation triggered a significant market reaction. Following the announcement, the price of Fermi stock plummeted by more than 33%, closing at $10.09 per share, well below its IPO price.
Robbins Geller's Role and Investor Outreach
Robbins Geller Rudman & Dowd LLP is encouraging any investors who have information relevant to the investigation or those who have suffered losses related to Fermi Inc. (NASDAQ: FRMI) to come forward. They can provide their information through the law firm’s dedicated webpage for this case. Interested parties may also contact attorneys J.C. Sanchez or Jennifer N. Caringal directly at 800-449-4900 or via email.
About Robbins Geller Rudman & Dowd LLP
Robbins Geller Rudman & Dowd LLP is a leading law firm representing investors in cases regarding securities fraud and shareholder litigation. The firm has secured the most monetary relief for investors in four out of the last five years, recovering over $2.5 billion in 2024 alone. With 200 attorneys across 10 offices, Robbins Geller is recognized for obtaining substantial recoveries in major securities class actions, including the largest recorded recovery of $7.2 billion in the In re Enron Corp. Sec. Litig. case.