Quantum Biopharma Files Amended Complaint Against CIBC World Markets, RBC Dominion Securities and Others, Seeking Damages in Excess of $700,000,000 USD, for Possible Stock Price Manipulation/Spoofing
Quantum BioPharma (NASDAQ: QNTM) has filed an amended complaint in the U.S. District Court for the Southern District of New York against CIBC World Markets and RBC Dominion Securities, seeking damages exceeding $700 million USD. The lawsuit alleges that between January 2020 and August 2024, the defendants engaged in market manipulation through "spoofing" techniques, violating multiple sections of the Securities Exchange Act of 1934.
The company's stock, which traded above $460 USD per share in January 2020 with a market cap approaching $1 billion, was allegedly artificially depressed by hundreds of spoofing incidents. Law firms Christian Attar and Freedman Normand Friedland LLP are handling the case on a contingency basis, eliminating material financial pressure on Quantum BioPharma for legal costs.
Quantum BioPharma (NASDAQ: QNTM) ha presentato un reclamo modificato presso il Tribunale Distrettuale degli Stati Uniti per il Distretto Sud di New York contro CIBC World Markets e RBC Dominion Securities, richiedendo danni superiori a 700 milioni di dollari USA. La causa sostiene che tra gennaio 2020 e agosto 2024, gli imputati abbiano manipolato il mercato utilizzando tecniche di "spoofing", violando diverse sezioni del Securities Exchange Act del 1934.
Il titolo della società, che a gennaio 2020 veniva scambiato sopra i 460 dollari USA per azione con una capitalizzazione di mercato vicina a 1 miliardo, sarebbe stato artificialmente depresso da centinaia di episodi di spoofing. Gli studi legali Christian Attar e Freedman Normand Friedland LLP gestiscono il caso con un accordo di contingenza, eliminando così una pressione finanziaria significativa su Quantum BioPharma per i costi legali.
Quantum BioPharma (NASDAQ: QNTM) ha presentado una demanda enmendada en el Tribunal de Distrito de los Estados Unidos para el Distrito Sur de Nueva York contra CIBC World Markets y RBC Dominion Securities, buscando daños que superan los 700 millones de dólares estadounidenses. La demanda alega que entre enero de 2020 y agosto de 2024, los acusados participaron en manipulación del mercado mediante técnicas de "spoofing", violando varias secciones de la Ley de Intercambio de Valores de 1934.
Las acciones de la compañía, que se cotizaban por encima de 460 dólares estadounidenses por acción en enero de 2020 con una capitalización de mercado cercana a los 1.000 millones, fueron supuestamente deprimidas artificialmente por cientos de incidentes de spoofing. Los bufetes de abogados Christian Attar y Freedman Normand Friedland LLP están manejando el caso bajo una base de contingencia, eliminando así una presión financiera significativa sobre Quantum BioPharma para los costos legales.
Quantum BioPharma (NASDAQ: QNTM)는 뉴욕 남부 지방법원에 CIBC World Markets와 RBC Dominion Securities를 상대로 수정된 소장을 제출했으며, 7억 달러 이상의 손해배상을 청구하고 있습니다. 소송은 2020년 1월부터 2024년 8월까지 피고들이 '스푸핑' 기법을 통해 시장 조작을 행했으며, 1934년 증권거래법의 여러 조항을 위반했다고 주장합니다.
회사의 주식은 2020년 1월 주당 460달러 이상에 거래되었으며 시가총액은 거의 10억 달러에 달했으나, 수백 건의 스푸핑 사건으로 인해 인위적으로 주가가 하락했다고 합니다. Christian Attar 및 Freedman Normand Friedland LLP 법률사무소가 수임료 선지급 없이 사건을 맡아 Quantum BioPharma의 법적 비용에 대한 재정적 부담을 없앴습니다.
Quantum BioPharma (NASDAQ : QNTM) a déposé une plainte modifiée auprès du tribunal de district des États-Unis pour le district sud de New York contre CIBC World Markets et RBC Dominion Securities, réclamant des dommages-intérêts supérieurs à 700 millions de dollars américains. Le procès allègue qu'entre janvier 2020 et août 2024, les défendeurs ont manipulé le marché en utilisant des techniques de « spoofing », violant plusieurs sections du Securities Exchange Act de 1934.
Les actions de la société, qui se négociaient au-dessus de 460 dollars américains par action en janvier 2020 avec une capitalisation boursière proche d’un milliard, auraient été artificiellement déprimées par des centaines d’incidents de spoofing. Les cabinets d’avocats Christian Attar et Freedman Normand Friedland LLP gèrent l’affaire sur une base de contingence, supprimant ainsi une pression financière importante sur Quantum BioPharma concernant les frais juridiques.
Quantum BioPharma (NASDAQ: QNTM) hat vor dem US-Bezirksgericht für den südlichen Bezirk von New York eine geänderte Klage gegen CIBC World Markets und RBC Dominion Securities eingereicht und fordert Schadensersatz in Höhe von über 700 Millionen US-Dollar. Die Klage behauptet, dass die Beklagten zwischen Januar 2020 und August 2024 durch "Spoofing"-Techniken den Markt manipuliert und dabei mehrere Abschnitte des Securities Exchange Act von 1934 verletzt haben.
Die Aktie des Unternehmens, die im Januar 2020 über 460 US-Dollar pro Aktie gehandelt wurde und eine Marktkapitalisierung von fast einer Milliarde US-Dollar hatte, wurde angeblich durch hunderte Spoofing-Vorfälle künstlich gedrückt. Die Anwaltskanzleien Christian Attar und Freedman Normand Friedland LLP vertreten den Fall auf Erfolgsbasis, wodurch Quantum BioPharma keine erheblichen finanziellen Belastungen durch Anwaltskosten entstehen.
- Law firms are handling the case on a contingency basis, minimizing financial burden on the company
- Potential recovery of $700 million USD in damages if successful
- Company remains open to finding amicable solutions with involved parties
- Stock price allegedly manipulated down from $460 USD per share through spoofing activities
- Legal proceedings could be lengthy and outcome uncertain
- Possible involvement of additional unnamed banks/brokers in the alleged manipulation scheme
Insights
Quantum's $700M market manipulation lawsuit against major banks faces significant legal hurdles despite contingency representation and serious allegations.
This amended complaint by Quantum BioPharma represents a noteworthy securities case alleging "spoofing" - a manipulative trading practice where orders are placed with intent to cancel before execution, creating false market impressions. Filed in the Southern District of New York against CIBC World Markets and RBC Dominion Securities, the lawsuit claims violations of core anti-fraud provisions under the Securities Exchange Act.
The case structure reveals several important aspects. First, it's unusual for an issuing company (rather than regulators or shareholders) to bring spoofing allegations. Second, the amended filing in response to a Motion to Dismiss suggests the case has already encountered procedural challenges, common in market manipulation litigation.
The contingency arrangement with law firms Christian Attar and Freedman Normand Friedland indicates these firms see sufficient merit to invest their resources, though they'll likely claim
The alleged manipulation period (January 2020 to August 2024) and claimed damages exceeding
Market manipulation cases face substantial evidentiary hurdles - plaintiffs must demonstrate intentional deceptive conduct that artificially affected stock prices. The company's stated openness to "an amicable solution" signals potential settlement interest, which is common given the uncertainty and extended timeline typical in securities litigation.
Quantum's $700M lawsuit against major banks alleges share price manipulation but faces uncertain prospects and lengthy resolution timeline.
This legal action represents both a potential asset and evidence of extraordinary share price decline for Quantum BioPharma. The complaint alleges that between January 2020 and August 2024, "spoofing" activities by major financial institutions artificially depressed the company's stock, which reportedly traded above
The
The contingency fee arrangement with Christian Attar and Freedman Normand Friedland is financially prudent as it prevents diversion of operational capital to legal expenses. However, this arrangement typically results in law firms claiming a substantial portion of any recovery.
The company's indication that other unnamed financial institutions may also be involved suggests potential expansion of litigation scope depending on evidence discovery. This creates both additional recovery potential and increased complexity.
For shareholders, this represents a low-probability but high-magnitude potential future catalyst with highly uncertain timing. The fact that defendants have already filed a Motion to Dismiss (January 31, 2025) indicates the case faces immediate procedural challenges common in securities litigation.
To assist enquiries a copy of the amended complaint can be viewed by clicking the following link:
Quantum Amended Court Claim
TORONTO, May 05, 2025 (GLOBE NEWSWIRE) -- Quantum BioPharma Ltd. (NASDAQ: QNTM) (CSE: QNTM) (FRA: 0K91) (“Quantum BioPharma” or the “Company”), a biopharmaceutical company dedicated to building a portfolio of innovative assets and biotech solutions, today announced that on May 1, 2025 it filed an amended complaint in the United States District Court for the Southern District of New York. This is an amendment to the original complaint filed on October 21, 2024, is in response to the Motion to Dismiss filed by the banks on January 31, 2025, and is filed in the United States District Court for the Southern District of New York. The amendment and complaint allege that CIBC World Markets (CIBC), RBC Dominion Securities (RBC), and others (the “Defendants”) engaged in market manipulation schemes that violated Section 10(b) and Rule 10b-5(a) and (c) and Section 9(a) of the Securities Exchange Act of 1934. This lawsuit alleges that between 1st of January 2020 and 15th of August 2024 the Defendants and/or their customers used “spoofing” techniques to manipulate the share price of Quantum BioPharma shares. The Company is seeking damages of more than $700 Million USD.
The Company has posted a copy of the amended complaint, as well as the original complaint, on its website on the News page. A copy of the filing can be found at https://www.quantumbiopharma.com/quantum-biopharma-vs-banks or by clicking the following link: Quantum Amended Court Claim
The law firms Christian Attar and Freedman Normand Friedland LLP have agreed to take and file this case on a contingency basis and, as such, there will be no material financial pressure on the Company to bear the legal costs associated with this case. These law firms, working with industry experts, conducted an extensive investigation into the Defendants’ conduct, and have concluded that there is sufficient evidence of market manipulation for the Company to pursue claims against the Defendants. The complaint details this evidence, which the Company alleges, that demonstrates that Defendants “spoofed” the market hundreds of times, thereby artificially depressing the price of the Company’s stock repeatedly, resulting in harm to both the Company and its investors.
The Company’s stock in January 2020 was trading over
The Company believes that, in addition to CIBC and RBC, other banks/brokers are involved in this alleged market manipulation scheme in the Company’s stock. The Company will refrain from naming these banks until more conclusive evidence is gathered.
The Company is open to dialogue and will always remain open to finding an amicable solution with the banks and brokers involved.
About Christian Attar
Christian Attar practices civil litigation, including shareholder and partnership disputes, and stock fraud. The firm operates domestically and internationally, with its corporate headquarters based in Houston, Texas.
To learn more about Christian Attar, visit www.ChristianAttarLaw.com
About Freedman Normand Friedland LLP
Freedman Normand Friedland is a litigation boutique with offices in New York, Miami, and Boston. The firm and its attorneys have extensive experience in complex commercial litigation, including in path-breaking antitrust, securities, and market manipulation matters.
To learn more about Freedman Normand Friedland, LLP, visit www.fnf.law.
About Quantum BioPharma Ltd.
Quantum BioPharma (NASDAQ: QNTM) is a biopharmaceutical company dedicated to building a portfolio of innovative assets and biotech solutions for the treatment of challenging neurodegenerative and metabolic disorders and alcohol misuse disorders with drug candidates in different stages of development. Through its wholly owned subsidiary, Lucid Psycheceuticals Inc. (“Lucid”), Quantum BioPharma is focused on the research and development of its lead compound, Lucid-MS. Lucid-MS is a patented new chemical entity shown to prevent and reverse myelin degradation, the underlying mechanism of multiple sclerosis, in preclinical models. Quantum BioPharma invented unbuzzd™ and spun out its OTC version to a company, Celly Nutrition Corp. (“Celly Nutrition”), led by industry veterans. Quantum BioPharma retains ownership of
For more information on Quantum BioPharma, please visit www.quantumbiopharma.com.
Forward-Looking Information
This press release contains certain “forward-looking statements” within the meaning of applicable Canadian securities law. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as “believes”, “anticipates”, “expects”, “is expected”, “scheduled”, “estimates”, “pending”, “intends”, “plans”, “forecasts”, “targets”, or “hopes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “will”, “should” “might”, “will be taken”, or “occur” and similar expressions) are not statements of historical fact and may be forward-looking statements. The forward-looking information and forward-looking statements contained herein include, but are not limited to, statements regarding: the Company’s focus on the research and development of Lucid-MS to prevent and reverse myelin degradation; the Company’s Lucid-21-302 clinical development program in multiple sclerosis advancing towards human phase-2 efficacy trials; Lucid-21-302 having an initial indication in multiple sclerosis; the Company’s intention to retain
Forward-looking information in this news release are based on certain assumptions and expected future events, namely: the Company’s assessment of market conditions, its ability to gain market share, and its potential competitive edge are accurate; the Company will have the ability to carry out its plans with respect to its new innovation and offerings, including its ability to conduct research and development of Lucid-MS; the Company’s Lucid-21-302 clinical development program in multiple sclerosis will advance towards human phase-2 efficacy trials; Lucid-21-302 having an initial indication in multiple sclerosis; the Company will retain
These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including but not limited to: the Company’s inability to retain
The reader is urged to refer to additional information relating to Quantum BioPharma, including its annual information form, can be located on the SEDAR+ website at www.sedarplus.ca and on the EDGAR section of the United States Securities and Exchange Commission’s website at www.sec.gov for a more complete discussion of such risk factors and their potential effects.
Contacts:
Quantum BioPharma Ltd.
Zeeshan Saeed, Founder, CEO and Executive Co-Chairman of the Board
Email: Zsaeed@quantumbiopharma.com
Telephone: (833) 571-1811
Investor Relations
Investor Relations: IR@QuantumBioPharma.com
General Inquiries: info@QuantumBioPharma.com
FAQ
What is the amount of damages Quantum BioPharma (QNTM) is seeking in its lawsuit against CIBC and RBC?
What type of market manipulation is Quantum BioPharma (QNTM) alleging in its lawsuit?
What was Quantum BioPharma's (QNTM) stock price before the alleged manipulation began?
Who are the law firms representing Quantum BioPharma (QNTM) in this lawsuit?
When did Quantum BioPharma (QNTM) file its original complaint against the banks?
