Quantum BioPharma Ltd. (NASDAQ: QNTM) (CSE: QNTM) has taken a firm stand against a motion to dismiss filed by CIBC World Markets and RBC Dominion Securities in a U.S. District Court. The biopharmaceutical company's opposition is part of a lawsuit that accuses the defendants of engaging in market manipulation through 'spoofing' between January 1, 2020, and August 15, 2024, actions that allegedly violated federal securities laws. Quantum BioPharma is seeking over $700 million in damages, claiming these practices artificially depressed its stock price, which once soared above $460 per share.
The case, pursued on a contingency basis by Christian Attar and Freedman Normand Friedland LLP, suggests that the defendants spoofed the market hundreds of times. Spoofing, a practice where traders place orders with no intention of executing them to create a false impression of demand or supply, is illegal under U.S. securities laws. Quantum BioPharma believes that additional banks or brokers may be involved in these activities and remains open to a potential resolution.
This lawsuit underscores the ongoing challenges in enforcing securities laws and protecting investors from market manipulation. The outcome could have significant implications for how financial institutions conduct trades and the measures regulators might take to prevent similar practices in the future. For more details on the case, visit https://ibn.fm/aVf7r.
Quantum BioPharma, through its subsidiary Lucid Psycheceuticals Inc., is focused on developing treatments for neurodegenerative and metabolic disorders, including its lead compound, Lucid-MS. The company also retains a significant stake in Celly Nutrition Corp., the developer of UNBUZZD(TM), and continues to explore strategic investments through its subsidiary, FSD Strategic Investments Inc.
