The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of investors who purchased Quantum Computing Inc. (“QCI” or the “Company”) (NASDAQ: QUBT) securities between March 30, 2020 and January 15, 2025, inclusive (the “Class Period”). QCI investors have until April 28, 2025 to file a lead plaintiff motion.

What Happened?

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. On December 9, 2024, Iceberg Research published another report, stating that the photos that QCI had share 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.’”

On this news, QCI’s stock price fell $0.46, or 5.8%, to close at $7.47 per share on December 9, 2024, thereby injuring investors.

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 the Company 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 14.9%, over two consecutive trading days to close at $9.83 per share on January 17, 2025, thereby injuring investors further.

What Is The Lawsuit About?

The complaint filed in this class action 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) Defendants overstated the capabilities of QCI’s quantum computing technologies, products, and/or services; (2) 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; (3) 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; (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.