Fermi Faces Investor Lawsuits Following Major Client Loss

The AI infrastructure-focused energy firm Fermi is navigating a significant legal challenge. Multiple class-action lawsuits have been filed against the company, centering on allegations that it misled the market regarding true project demand and the security of its financing. This legal pressure follows the loss of a key anchor tenant in December 2025.

Market confidence has been severely damaged, reflected starkly in Fermi's share price performance. The stock recently touched a new 52-week low of $7.20. This price represents a dramatic fall of nearly 72% from the peak it reached in November. Technical indicators underscore the selling pressure, with a Relative Strength Index (RSI) reading of 22.1 placing the equity in technically oversold territory.

The decline was triggered by a December 2025 announcement that a primary tenant had terminated its pre-lease agreement for the planned "Project Matador" campus. The partner withdrew after an exclusivity period lapsed. News of this departure prompted an immediate, severe market reaction, with shares collapsing by over 33% in a single trading session.

The situation was compounded in late January when a lock-up period on insider shares expired. This event increased the supply of stock available on the market, adding further downward pressure on the price. The steep decline so soon after Fermi's October 2025 initial public offering has caused considerable unease among its earliest investors.

Should investors sell immediately? Or is it worth buying Fermi?

Core Allegations: Misrepresentation and Reliance

Law firms behind the collective actions allege Fermi's management presented an overly optimistic picture of tenant demand for the Matador campus in the period leading up to the contract cancellation. A central question raised is whether the company's reliance on this single client for the overall project financing was far greater than what was communicated to investors.

All eyes are now on the company's upcoming financial disclosure for clarity. While Fermi has not confirmed a precise date, market observers anticipate the next quarterly results will be published around February 24, 2026.

Next Report Crucial for Restoring Confidence

This forthcoming report is viewed as a critical juncture. Investors and analysts will scrutinize it for detailed information on the company's liquidity and the development status of its energy projects. Specific updates are demanded on the future of the Matador campus and whether new partners can be secured to fill the void left by the departed anchor tenant. A comprehensive and transparent breakdown of Fermi's financial position is widely seen as the necessary first step to halt the persistent downward trend in its shares.