1. Scott+Scott investigating Fermi for potential securities law violations. 2. Fermi's stock dropped 33.8% after a major agreement termination. 3. Fermi's share price fell to $10.09, over 50% below IPO price. 4. The company targets energy supply for AI technologies. 5. Class action may be initiated due to misleading statements.
FAQ
Why Very Bearish?
Fermi’s recent stock decline after significant news reflects investor distrust, similar to past IPOs where initial euphoria led to sharp declines upon bad news.
How important is it?
With active investigations and legal scrutiny, stock prices often react adversely, especially for new market entrants like Fermi.
Why Short Term?
The immediate investigation into misleading statements can lead to rapid price volatility, historically seen in similar scenarios.
Scott+Scott Investigates Fermi Inc. (NASDAQ: FRMI) for Potential Securities Violations
NEW YORK, Dec. 15, 2025 (GLOBE NEWSWIRE) -- Scott+Scott Attorneys at Law LLP (“Scott+Scott”), a prominent shareholder and consumer rights litigation firm, has launched an investigation into Fermi Inc. (“Fermi” or the “Company”) (NASDAQ: FRMI). The inquiry focuses on whether Fermi’s officers and directors made misleading statements or failed to disclose critical information that could impact investors, in violation of federal securities laws.
Overview of Fermi’s Business and Recent Events
Fermi Inc. is a company that aims to provide energy solutions to support next-generation artificial intelligence technologies. The Company made its debut on the NASDAQ on October 1, 2025, with shares valued at $21.00 each following a successful Initial Public Offering (“IPO”). However, on December 12, 2025, Fermi disclosed the termination of a significant tenant for its anticipated Project Matador AI campus, which involved a $150 million Advance in Aid of Construction Agreement. This agreement was intended to cover the facility's construction costs.
Impact on Stock Performance
The announcement of the tenant's departure had a substantial effect on Fermi’s stock price. Following the news, shares of FRMI plummeted by $5.16, representing a sharp decline of 33.8%, closing at $10.09 on December 12, 2025. This drop indicates a significant decrease of over 50% from the initial trading price of $21.00, raising concerns among investors about the Company's future.
Investigation and Investor Rights
Scott+Scott is keen to determine if the actions of Fermi’s management violate securities laws, which could enable affected shareholders to join a potential class action lawsuit. Investors who have purchased Fermi common stock and have incurred losses, whether realized or unrealized, are encouraged to contact attorney Mandeep S. Minhas at (888) 398-9312 or via email at mminhas@scott-scott.com.
About Scott+Scott Attorneys at Law LLP
Scott+Scott is an internationally recognized law firm dedicated to representing corporate clients, institutional investors, and individuals affected by anticompetitive practices or securities violations. With over 100 attorneys across eight U.S. offices and three offices in Europe, the firm has achieved substantial monetary settlements and other relief for its clients. Scott+Scott’s legal expertise was acknowledged in 2024, with its attorneys named among the top financial lawyers by esteemed publications including Lawdragon and WWL: Commercial Litigation.
Contact Information
This announcement may be considered attorney advertising. For more information regarding potential recovery options, please reach out to:
Mandeep S. Minhas
Scott+Scott Attorneys at Law LLP
230 Park Avenue, 24th Floor
New York, NY 10169
(888) 398-9312
mminhas@scott-scott.com