Fermi Hit With SDNY Securities Class Action Over Project Matador Disclosures

Investors have until March 6 to seek lead-plaintiff status after Fermi’s anchor tenant terminated a $150 million construction advance, prompting a steep single-day selloff.

Overview

The putative class action, Lupia v. Fermi Inc., No. 1:26-cv-00050, is filed in the Southern District of New York on behalf of IPO purchasers and investors who bought between Oct. 1 and Dec. 11, 2025.
Plaintiffs allege Fermi overstated demand for its Project Matador AI campus and concealed reliance on a single anchor tenant’s funding commitment and the risk it could be withdrawn.
Fermi disclosed on Dec. 12, 2025 that the “First Tenant” terminated an Advance in Aid of Construction Agreement worth up to $150 million on Dec. 11, removing a key construction funding source.
Fermi shares fell 33.8% that day to close at $10.09, more than 50% below the $21 IPO price, and have traded as low as $8.59, according to the complaints.
Multiple firms — including Robbins Geller, Hagens Berman, Bernstein Liebhard, Robbins LLP, Pomerantz, Bleichmar Fonti & Auld, Faruqi & Faruqi, and Bragar Eagel & Squire — are soliciting investors to move for lead-plaintiff by March 6, 2026.