NEW YORK, March 26, 2025 (GLOBE NEWSWIRE) — Pomerantz LLP announces that a class action lawsuit has been filed against Quantum Computing Inc. (“QCI” or the “Company”) (NASDAQ: QUBT) and certain officers. The class action, filed in the United States District Court for the District of New Jersey, and docketed under 25-cv-01457, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired QCI securities between March 30, 2020 and January 15, 2025, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are an investor who purchased or otherwise acquired QCI securities during the Class Period, you have until April 28, 2025 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
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QCI is an American company that purportedly utilizes non-linear quantum optics to deliver quantum products for high-performance computing applications. The Company has a history of reinventing its business to align with shifting popular trends in the technology industry.
Since its founding in 2018, QCI has shifted its focus from quantum-computer-ready software services to commercializing quantum photonic technology and related devices, to integrating this technology and devices with artificial intelligence (“AI”) applications, to producing thin film lithium niobate (“TFLN”) quantum computing chips.
In September 2023, QCI announced that it had selected a five-acre site in Arizona State University’s (“ASU”) Research Park in Tempe, Arizona for its purported “Quantum Photonic Chip Foundry” to produce TFLN chips, which Defendants purportedly expected QCI to mass produce by late 2024 to early 2025.
Throughout the Class Period, Defendants repeatedly touted QCI’s business dealings and contracts with various entities, including employee staffing solutions company Quad M Solutions, Inc. (“Quad M”) and millionways, Inc. (“millionways”), purportedly a leading AI firm, as well as QCI’s purported “long-standing strategic partnership” with the National Aeronautics and Space Administration (“NASA”). Defendants represented that each such deal, contract, or partnership resulted from QCI’s ability to substantially aid a given use-case through its differentiated quantum computing technologies, products, and/or services.
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Defendants overstated the capabilities of QCI’s quantum computing technologies, products, and/or services; (ii) Defendants overstated the scope and nature of QCI’s relationship with NASA, as well as the scope and nature of QCI’s NASA-related contracts and/or subcontracts; (iii) Defendants overstated QCI’s progress in developing a TFLN foundry, the scale of the purported TFLN foundry, and orders for the Company’s TFLN chips; (iv) QCI’s business dealings with Quad M and millionways both qualified as related party transactions; (v) accordingly, QCI’s revenues relied, at least in part, on undisclosed related party transactions; (vi) all the foregoing, once revealed, was likely to have a significant negative impact on QCI’s business and reputation; and (vii) as a result, Defendants’ public statements were materially false and misleading at all relevant times.
On November 27, 2024, Iceberg Research (“Iceberg”) published a report alleging that QCI’s press releases concerning its TFLN foundry, as well as purchase orders for the Company’s TFLN chips, were a sham. In support of these allegations, Iceberg cited communications with a university professor who had ordered the Company’s TFLN chips, photos of the address at which the Company’s purported TFLN foundry was located per QCI’s website—which showed only what appeared to be an office building—and communications with ASU Research Park building management.
On December 9, 2024, Iceberg published a second report addressing QCI, noting that, although QCI “ha[d] shared photos online of what it claims to be its foundry[,]” “this setup looks more like a laboratory” and “is a far cry from a foundry ready for ‘mass production’ on what [QCI] said would be ‘five acres within the extensive 320-acre research park hosted by ASU[.]’” The same report further noted that “[f]rom 2021 to 9M24, [QCI] reported insignificant levels of revenue, despite various claims, such as being a NASA sub-contractor.”
On this news, QCI’s stock price fell $0.46 per share, or 5.8%, to close at $7.47 per share on December 9, 2024.
Then, on January 16, 2025, Capybara Research (“Capybara”) published a report alleging, inter alia, that QCI had overstated its ties to NASA and fabricated revenues through multiple related-party transactions, particularly with Quad M and millionways. The Capybara report also alleged that QCI’s products were fake, citing comments by former QCI personnel; and that QCI was pumping its stock price with false and misleading press releases, citing discussions with QCI’s former employees, QCI’s associates and prime contractors, and NASA personnel. Moreover, the Capybara report alleged that QCI had never purchased the five-acre parcel at the ASU Research Park for its TFLN foundry, citing ASU Research Park management.
On this news, QCI’s stock price fell $1.72 per share, or 14.89%, over the following two trading sessions, to close at $9.83 per share on January 17, 2025.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
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