Quantum Computing Inc. (NASDAQ: QUBT) Securities Fraud Class Action

LEAD PLAINTIFF DEADLINE IS APRIL 28, 2025.

If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.

Case Background:
A class action lawsuit was filed on behalf of those who purchased or otherwise acquired Quantum Computing Inc. (“QCI”) (NASDAQ: QUBT) securities between March 30, 2020, and January 15, 2025, inclusive (the “Class Period”).

The Class Period begins on March 30, 2020, the first trading day after QCI filed an annual report on Form 10-K with the SEC during after-market hours, reporting the company’s financial and operating results for the quarter and year ended December 31, 2019 (the “2019 10-K”). In the 2019 10-K, QCI touted the company’s quantum computing technology, products, and services. 

On November 27, 2024, Iceberg Research published a report alleging, among other things, that QCI’s statements regarding its thin film lithium niobate (“TFLN”) foundry, as well as purchase orders for TFLN quantum computing chips, were a sham.  In support of these allegations, Iceberg Research cited communications with a university professor who had ordered QCI’s TFLN chips, photos of the address at which QCI’s purported TFLN foundry was located per QCI’s website—which showed only what appeared to be an office building—and communications with Arizona State University Research Park building management.  On December 9, 2024, Iceberg Research published another report, stating that the photos that QCI had shared of “what it claim[ed] to be its foundry . . . look[ed] more like a laboratory” and was “a far cry from a foundry ready for ‘mass production.’” The 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, or 5.8%, to close at $7.47 per share on December 9, 2024.  

Then, on January 16, 2025, Capybara Research published a report alleging, among other things, that QCI had overstated its ties to NASA and had fabricated revenues through multiple related-party transactions. The report further alleged that QCI’s products were fake, that it was pumping its stock price with false and misleading press releases, and that QCI had never purchased the five-acre parcel at Arizona State University’s Research Park for its TFLN foundry, as it had claimed it would.  On this news, QCI’s stock price fell $1.72, or 14.89%, over two consecutive trading days, to close at $9.83 per share on January 17, 2025. 

The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) QCI overstated the capabilities of the company’s quantum computing technologies, products, and/or services; (2) QCI overstated the scope and nature of its relationship with NASA, as well as the scope and nature of QCI’s NASA-related contracts and/or subcontracts; (3) QCI overstated the company’s progress in developing a TFLN foundry, the scale of the purported TFLN foundry, and orders for the company’s TFLN chips; (4) QCI’s business dealings with Quad M Solutions, Inc. and millionways, Inc. both qualified as related party transactions; (5) accordingly, QCI’s revenues relied, at least in part, on undisclosed related party transactions; (6) all the foregoing, once revealed, was likely to have a significant negative impact on QCI’s business and reputation; and (7) as a result, Defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

What is a Lead Plaintiff?

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case.  Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.