Quantum BioPharma Files $700 Million Lawsuit, Expands Wellness Product Distribution
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Quantum BioPharma Ltd. (NASDAQ: QNTM) (CSE: QNTM) has taken significant steps to address alleged market manipulation and expand its product reach. The biopharmaceutical company, known for its focus on neurodegenerative and metabolic disorders, has filed a lawsuit seeking over $700 million in damages while also securing a major distribution deal for its functional wellness beverage, unbuzzd.
On October 20, 2024, Quantum BioPharma filed a lawsuit in the United States District Court for the Southern District of New York against CIBC World Markets, RBC Dominion Securities, and other entities. The company alleges these defendants engaged in stock price manipulation, or 'spoofing,' between January 1, 2020, and August 15, 2024. This alleged manipulation reportedly led to a significant drop in Quantum BioPharma's stock value, prompting the company to seek substantial damages.
Concurrently, Quantum BioPharma is expanding its market presence through its subsidiary, Celly Nutrition Corp. On October 7, 2024, Celly Nutrition secured a Master Distribution Agreement with FUSION Consulting Group for unbuzzd, a beverage designed to support alcohol metabolism. This agreement grants unbuzzd access to major retailers in Puerto Rico, the Caribbean, and parts of Central and South America, including Walmart, Walgreens, CVS, and Costco.
The expansion of unbuzzd into vacation-heavy markets where alcohol consumption is common represents a strategic move to diversify revenue streams. This approach allows Quantum BioPharma to generate near-term revenue while continuing to advance its core biopharmaceutical research, including the development of Lucid-MS for multiple sclerosis treatment.
The dual actions of legal recourse and market expansion demonstrate Quantum BioPharma's commitment to protecting shareholder value while pursuing growth opportunities. The lawsuit, if successful, could provide significant financial compensation and potentially deter future market manipulation. Meanwhile, the distribution agreement for unbuzzd opens new revenue channels in promising markets.
These developments come at a crucial time for Quantum BioPharma, as it recently received ethics approval in Australia to commence Phase 1 clinical trials for Lucid-MS. This progress in its core biopharmaceutical pipeline, combined with the expansion of its wellness product line, positions the company for potential growth in both the short and long term.
Investors and industry observers will likely watch closely to see how these legal and business strategies unfold, and their potential impact on Quantum BioPharma's market position and financial performance in the competitive biopharmaceutical and wellness sectors.
