- Significant lawsuit filed in the United States District Court for the Southern District of New York
- Seeking damages in excess of $700 million USD
- Alleges market manipulation through the practice of “spoofing”
Quantum BioPharma Ltd. (NASDAQ)(CSE)(FRA:0K91), a cutting-edge biopharmaceutical company, has filed a significant lawsuit in the United States District Court for the Southern District of New York, seeking damages exceeding $700 million USD. The lawsuit alleges that CIBC World Markets (CIBC), RBC Dominion Securities (RBC), and several other entities engaged in a years-long market manipulation scheme involving “spoofing” techniques that artificially depressed the company’s stock price.
According to the lawsuit, these manipulative actions occurred between January 1, 2020, and August 15, 2024, causing substantial financial harm to Quantum BioPharma and its shareholders. The company’s legal team is comprised of the prestigious law firms Christian Attar and Freedman Normand Friedland LLP, who, alongside forensic investigators, uncovered evidence of this potential scheme.
Market Manipulation and Spoofing Allegations
The term “spoofing” refers to a deceptive trading practice wherein non-bona fide buy and sell orders are placed with the intention of canceling them before execution. These fake orders create an illusion of market activity, misleading investors and influencing stock prices. The Financial Industry Regulatory Authority (FINRA) classifies spoofing as a harmful practice that distorts the transparency and integrity of the financial markets.
Quantum BioPharma’s complaint alleges that the Defendants repeatedly used spoofing tactics to artificially lower the value of its stock, causing devastating financial losses for both the company and its retail investors. This extensive manipulation allegedly resulted in hundreds of instances where Quantum BioPharma’s stock was artificially suppressed, allowing others to profit at the expense of the company’s shareholders.
In January 2020, Quantum BioPharma’s stock was trading at over $460 USD per share, with a market cap approaching $1 billion. As of October 18, 2024, the stock closed at just $7.55 USD per share, with a market cap of under $15 million USD.
Legal Representation and Case Outlook
James Wes Christian of Christian Attar Law Firm, a lead counsel on the case, noted that this is one of the most significant market manipulation cases they have encountered in over two decades of practice. “I believe the damage model could be in excess of $700 million,” he stated, underscoring the scale of harm inflicted on the company.
Velvel Freedman, a partner at Freedman Normand Friedland LLP and co-lead counsel, emphasized the importance of this lawsuit for Quantum BioPharma and its shareholders. “This case involves an alleged widespread manipulation scheme with severe consequences for our client’s stock value. Quantum’s management is determined to protect shareholder equity and hold the Defendants accountable.”
Quantum BioPharma’s CEO and founder, Zeeshan Saeed, echoed the importance of the case for the company’s future. “We believe that our shareholders have suffered immensely due to the Defendants’ trading practices. We will utilize every legal means available to seek justice.”
Future Developments
Quantum BioPharma has suggested that additional financial institutions may be implicated in the alleged manipulation. The company has refrained from naming other parties at this time, pending further investigation.
Despite the ongoing litigation, the company remains open to dialogue and is willing to explore amicable solutions with the involved parties.
About the Law Firms
Christian Attar is a prominent law firm specializing in civil litigation, including stock fraud and shareholder disputes. With headquarters in Houston, Texas, the firm operates both domestically and internationally. Freedman Normand Friedland LLP is a high-end litigation boutique with expertise in complex commercial litigation, including securities fraud and market manipulation. The firm has offices in New York, Miami, and Boston.
For more information on the legal teams:
Source: https://ca.finance.yahoo.com/news/quantum-biopharma-nasdaq-qntm-files-110000041.html
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