Fermi Inc. fires co-founder Toby Neugebauer 'for cause'; he sues board as nuclear-powered data-center plan wobbles

Fermi Inc. (Nasdaq: FRMI), the nuclear- and gas-powered AI data-center REIT co-founded by former Texas Governor Rick Perry, terminated co-founder and former CEO Toby Neugebauer 'for cause' on April 17, 2026, automatically removing him from the board. According to Fermi's disclosures, an independent-director committee cited conduct including material misrepresentations to and lack of transparency with the board; public communications in violation of fiduciary duties, non-disclosure obligations and company policies; unauthorized meetings with third parties regarding company transactions; and a repeated pattern of threatening, abusive and bullying behavior.

Neugebauer disputes the characterization and on May 1, 2026 filed suit in a Texas business court, alleging he was first ousted without cause before the board retroactively asserted cause to trigger his board removal, and arguing that 'only the company's shareholders can dismiss a director.' Rick Perry remains a director. The dispute lands amid financial strain: the REIT went public in October 2025 raising about $683 million, but its shares fell more than 70% by January 2026 and were down roughly 40% on the year, trading near $5.25 against a 52-week high of $36.99. Its flagship 'Project Matador' campus near Amarillo, Texas — planned at multi-gigawatt scale — reportedly lost a large tranche of construction funding when a tenant withdrew support.

CFO Miles Everson resigned days after Neugebauer's departure, with Rob Masson II named interim CFO on April 30, 2026.