Fermi CEO suspends proxy fight after court delay

Judicial recusal postpones activist campaign over strategic review.

Fermi activist co-founder Toby Neugebauer has paused efforts to call a special meeting following a judicial setback that could delay a strategic review of the energy and data center development company.

Neugebauer launched a legal case earlier this year in an attempt to force Fermi to hold a special shareholder meeting where he could appoint his own slate of director nominees to the board.

He argued that his slate would launch a two-pronged strategic process: continue pursuing major tenants for Fermi’s AI-powered energy campus, known as Project Matador, while exploring strategic alternatives including a possible sale of the company or its flagship asset.

Neugebauer, who owns about 23% of Fermi, has said his campaign is backed by shareholders representing roughly 40% of the company's stock.

However, he revealed in a July 3 press release that the Texas Business Court judge presiding over the legal case had recused himself “an hour before [the] hearing,” making it impossible to seat new directors in time to oversee any such plans.

For its part, Fermi has criticized Neugebauer’s proposals and litigation, saying his efforts to regain control of the board after being terminated as CEO in April would harm shareholder value. Management instead promotes its “Fermi 2.0” strategy under current leadership.

Despite this, Neugebauer has claimed that his campaign had received the backing of proxy advisors Glass Lewis and Egan-Jones.

The news comes amid increasing litigation and regulatory involvement for AI companies and related industries. With 37 lawsuits filed in the U.S. in the first half of 2026 alone compared to seven during the same period the year before, the next phase of AI investing may be shaped just as much by courtrooms as by data centers.

For investors, the outcome of the court proceedings could determine whether shareholders gain the opportunity to reshape the board as Fermi evaluates financing options and long-term growth opportunities linked to the expanding AI infrastructure market.

Investors will be watching whether Fermi can advance negotiations with prospective tenants and secure the financing needed to support its strategic plans while the fate of Neugebauer’s court case remains unclear.

Fermi's stock closed at $8.06 on Thursday in New York, down 5.4% from Wednesday's close. The stock is down 0.4% year-to-date.

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