#United States #New Jersey #Securities Fraud #Pomerantz LLP #Quantum Computing Inc.

Investor Alert: Pomerantz Law Firm Takes Action Against Quantum Computing Inc.

In an important development for investors, Pomerantz LLP has announced that it has filed a class action lawsuit against Quantum Computing Inc. (QCI), along with certain officers of the company. This legal action is taking place in the United States District Court for the District of New Jersey and is registered under case number 25-cv-01457.

The class action seeks to protect the interests of all individuals and entities, excluding the defendants, who acquired QCI securities between March 30, 2020, and January 15, 2025. The lawsuit aims to recover damages caused by violations of federal securities laws, focusing on provisions under the Securities Exchange Act of 1934.

Starting with a brief overview of the firm, Pomerantz LLP is an established law firm renowned for its expertise in corporate and securities class litigation, which has made significant contributions in defending the rights of investors and victims of corporate misconduct over the past 85 years. Founded by Abraham L. Pomerantz, often recognized as a pioneer in the field, the firm has a track record of recovering billions in damages.

Background of Quantum Computing Inc.

Founded in 2018, QCI specializes in utilizing non-linear quantum optics to develop quantum products for high-performance computing applications. Over the years, the company has evolved its business strategy to align with emerging trends within the technology sector. Initially focused on quantum-computer-ready software, QCI later shifted towards commercializing quantum photonic technology before attempting to integrate artificial intelligence applications into their operations.

In September 2023, QCI made headlines by announcing the selection of a five-acre site in Arizona State University's Research Park, aiming to develop a facility for producing thin film lithium niobate (TFLN) quantum computing chips. This move was touted as a milestone for the company, with expectations to achieve mass production by late 2024 or early 2025.

However, concerns have arisen regarding the legitimacy of these assertions, as the lawsuit highlights that throughout the class period, QCI’s executives made what the suit claims to be materially false and misleading representations about the company's business dealings and operational capabilities.

Allegations and Misleading Statements

The crux of the allegations notes that the QCI leadership oversold the effectiveness of their quantum computing technologies and exaggerated the nature of their partnerships, including those with NASA and other corporate collaborations. Misstatements were also made about the actual progress regarding the development of their TFLN foundry and the nature of business dealings with partner firms such as Quad M Solutions and millionways.

Specifically, the complaint contends that the defendants failed to disclose that:

• - They had overstated the capabilities of QCI's quantum technologies;
• - Their connections with NASA were not as robust as claimed;
• - The TFLN foundry they advertised was misrepresented and did not reflect true operational capabilities;
• - Their revenue streams involved undisclosed related party transactions, thus manipulating the financial portrayal of the company.

Impact of the Allegations

The potential consequences of these alleged misstatements were felt acutely in the financial markets. Reports by Iceberg Research and Capybara have scrutinized QCI’s operations, alleging that the claims regarding its products and partnerships were misleading. Following the publication of these reports, QCI’s share price experienced significant declines, reflecting investor distrust and the scrutiny on its business practices.

By January 16, 2025, QCI's stock saw a steep loss of $1.72 per share, indicating a drop of nearly 15% indicative of the loss of investor confidence following the allegations.

Next Steps for Investors

For those who may have purchased or otherwise acquired securities during the class period, Pomerantz LLP has advised individuals that they have until April 28, 2025, to request the appointment as Lead Plaintiff in this class action. Investors looking for more details can access the complaint and additional resources through the Pomerantz website or reach out directly to their offices.

This legal battle highlights ongoing challenges in the technology sector, particularly the notable importance of transparency and honesty in corporate communications. The outcomes associated with QCI could have lasting implications not only for the company but also for investor confidence in broader quantum technology and artificial intelligence markets.

As this case progresses, stakeholders will be monitoring developments closely, as the results could usher in a new wave of scrutiny for companies operating in cutting-edge sectors such as quantum computing.