FRMI Stock Climbs Overnight: Former CEO Sues Three Directors Over Power Grab Allegations

• Neugebauer’s amended lawsuit alleges Fermi directors repeatedly changed bylaws to raise shareholder-voting thresholds after his proxy campaign.
• The dispute between Fermi and former CEO and largest shareholder Neugebauer has escalated into a corporate-governance battle after the company removed him as CEO in April.
• Fermi named Lee McIntire as CEO in August, who has taken the reins of the company as it pursues its ‘Fermi 2.0’ goals. 

Shares of Fermi LLC (FRMI) climbed higher in the overnight session late Monday, even after former CEO Toby Neugebauer filed lawsuits against three company directors alleging a pattern of governance abuses. 

Neugebauer alleged that three of Fermi's current directors have engaged in a long-running effort to consolidate their control of the company and disenfranchise Fermi shareholders. 

Fermi Vs Neugebauer: A Brief Overview

The dispute between Fermi and former CEO and largest shareholder Neugebauer has escalated into a corporate-governance battle after the company removed him as CEO in April. 

Later, Fermi also terminated Neugebauer for cause, removing him from the board. Neugebauer has since sought shareholder support to reshape the board and explore strategic alternatives, including a potential sale. 

He has now sued three directors, alleging they coordinated efforts to consolidate control and limit shareholder rights. 

Neugebauer’s amended lawsuit alleges Fermi directors repeatedly changed bylaws to raise shareholder-voting thresholds after his proxy campaign, while Fermi dropped a related Texas lawsuit after the court granted him discovery. 

Neugebauer alleges the directors exceeded their authority and acted intentionally. Separately, his attorney said his law firm mistakenly attached a false verification to a filing, and Neugebauer did not approve or knowingly verify the document.

Fermi 2.0 Updates

Fermi named Lee McIntire as CEO in August, who has taken the reins of the company as it pursues its ‘Fermi 2.0’ goals, shifting from startup mode toward a scaled AI infrastructure company. 

The company plans to strengthen governance, leadership succession, talent and technology while expanding relationships with customers and community partners. 

FRMI Stock: Retail Stance

On Stocktwits, retail sentiment around FRMI stock was ‘bearish’ at the time of writing. 

One user said, “$FRMI Fermi's biggest obstacle is its former CEO. Not tenants, not the backstop.”

Another user said, “$FRMI Toby ain’t going away anytime soon.  He’s a spoiled child who can’t handle getting fired even though he will make a ton of money with the shares he has…..He will destroy this stock out of spite instead of just letting it recover since his departure…”

However, a third user noted, “$FRMI backstop soon. 8$ this week for sure. Tomorrow will be another upside because of the nuclear convention. It's a huge opportunity.”

Fermi is finalizing an upcoming backstop agreement to support certain financial and operational obligations under its massive $6.5 billion lease with AI infrastructure provider TensorWave. 

FRMI stock is down more than 42% so far in 2026. 

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