Partner Reed Kathrein Scrutinizing Claims of High Conviction Against Revealed Construction Funding Collapse and 33% Stock Crash

SAN FRANCISCO, Jan. 29, 2026 /PRNewswire/ -- National shareholder rights law firm Hagens Berman is issuing an updated notice to investors in Fermi Inc. (NASDAQ: FRMI) regarding the March 6, 2026, lead plaintiff deadline in a pending securities class action against Fermi, certain of Fermi's top executives and directors, and underwriters of Fermi's Initial Public Offering (IPO).

CLICK HERE TO SUBMIT YOUR FRMI LOSSES

The litigation alleges that Fermi misrepresented the demand for its flagship "Project Matador"—a massive AI data center campus—and the stability of its primary anchor tenant. The complaint alleges that Defendants' misstatements were allegedly revealed on Dec. 12, 2025, when Fermi disclosed that the first tenant for its anticipated Project Matador AI campus had terminated its $150 million Advance in Aid of Construction Agreement (AICA), which would have supplied construction costs for the facility. On this news, the price of Fermi stock fell nearly 34%, according to the complaint.

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"We are investigating whether Fermi's IPO materials painted an artificial picture of demand to secure financing from investors," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation of the alleged claims.

The Fermi Inc. (FRMI) Securities Class Action's Allegations: The Project Matador Illusion and Anchor Tenant Risk

The pending litigation alleges that Fermi and its executives issued misleading statements regarding the viability of its core infrastructure project:

• Overstated Tenant Demand: The complaint alleges that Fermi's IPO registration statement inflated the actual demand for Project Matador's multi-gigawatt capacity to attract high-valuation multiples.
  
  
• Concealed Tenant Risks: The complaint alleges that Defendants misrepresented and omitted to disclose the extent to which Project Matador would rely on a single tenant's funding commitment to finance the construction of Project Matador, and that there was a significant risk that the tenant would terminate its funding commitment.
  
  
• The $150M AICA Termination: On Dec. 12, 2025, Fermi stunned the market by announcing that the First Tenant had terminated the AICA agreement 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.
  
  
• Dual Pronged Class: The Fermi class action lawsuit seeks to represent purchasers or acquirers of Fermi Inc. (NASDAQ: FRMI): (i) common stock pursuant and/or traceable to the registration statement and prospectus issued in connection with Fermi's Oct. 2025 IPO; and/or (ii) securities between Oct. 1, 2025 and Dec. 11, 2025, inclusive (the "Class Period").

Next Steps: Contact Partner Reed Kathrein Today

Hagens Berman is a top-tier plaintiff litigation firm recognized for prosecuting complex securities fraud class actions.

Mr. Kathrein is actively 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.

The Lead Plaintiff Deadline is March 6, 2026.

TO SUBMIT YOUR FERMI (FRMI) LOSSES NOW, PLEASE USE THE SECURE FORM BELOW:

• Click Here to Report Your FRMI Investment Losses to Hagens Berman
• Contact: Reed Kathrein at 844-916-0895 or email FRMI@hbsslaw.com

Whistleblowers: Persons with non-public information regarding Fermi should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email FRMI@hbsslaw.com.

About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

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SOURCE Hagens Berman Sobol Shapiro LLP