Deadline Looms for Quantum Computing Investors to Lead Fraud Lawsuit

Investors in Quantum Computing Inc. (NASDAQ: QUBT) are facing a critical crossroads. A securities fraud class action lawsuit alleges the company misled the market for nearly five years, and those who lost money now have a narrow window to seek leadership in the case. With a April 28, 2025 deadline to file as lead plaintiff, the stakes are high—and the potential for recovery even higher.

Allegations of Fraud and Misleading Claims

The lawsuit, filed in the U.S. District Court for the District of New Jersey, accuses QUBT of orchestrating a years-long scheme to inflate its value through false claims about its technology, partnerships, and financial health. Key allegations include:

1. Overstated Quantum Computing Capabilities: The company allegedly exaggerated the maturity and commercial viability of its quantum computing systems, painting a picture of breakthroughs that never materialized.
2. Fabricated NASA Relationships: QUBT purportedly claimed close ties to NASA and participation in high-profile projects, only for third-party investigations to expose these partnerships as either exaggerated or entirely fictional.
3. The TFLN Foundry Deception: A central allegation revolves around the company’s “thin film lithium niobate (TFLN) foundry,” which researchers later revealed was not a functional manufacturing facility but an underdeveloped lab space.
4. Undisclosed Related-Party Transactions: The lawsuit asserts that revenue from entities like Quad M Solutions, Inc. and millionways, Inc. was improperly classified to avoid disclosing conflicts of interest, artificially inflating QUBT’s financial statements.

These falsehoods, the plaintiffs argue, created an illusion of success that drove QUBT’s stock price far above its true value.

A Stock Price Collapse, Exposed by Research

The unraveling began in late 2024, as independent research firms like Iceberg Research and Capybara Research published reports dissecting QUBT’s claims. The revelations triggered sharp declines in its stock:

• December 9, 2024: The stock fell 5.8% to close at $7.47.
• January 17, 2025: After Capybara’s bombshell report on fabricated NASA ties and falsified revenue, shares plummeted 14.89%, closing at $9.83.

The chart underscores the volatility: investors who bought during QUBT’s peak in 2021, when shares topped $30, saw losses of over 70% by early 2025.

How to Participate—and Why Timing Matters

To join the lawsuit, investors who purchased QUBT shares between March 30, 2020, and January 15, 2025, must act by April 28, 2025. Those seeking lead plaintiff status must formally petition the court by this deadline. While the role carries significant responsibility—guiding litigation and negotiating settlements—it also offers outsized influence over the case’s direction.

The process is straightforward:
- Submit a claim form via one of the law firms handling the case, including Rosen Law Firm, Levi & Korsinsky, or Robbins LLP.
- No upfront costs: The lawsuit operates on a contingency basis, meaning attorneys only collect fees if they secure a recovery.

The Legal Landscape and Investor Risks

While the lawsuit has yet to be certified as a class action, the involvement of prominent law firms signals serious intent. For instance, Rosen Law Firm, which handles the case, has a track record of recovering over $4 billion for investors in securities class actions.

Yet, there are risks. Class certification is far from guaranteed, and even if approved, settlements in complex fraud cases often take years. Still, the data is compelling: QUBT’s stock has lost 92% of its value since its 2021 peak, and the company’s market cap now hovers near $200 million—down from over $2 billion.

Conclusion: Act Now, or Risk Missing Out

For investors who bought into QUBT’s hype, the April 28 deadline is a make-or-break moment. The allegations, supported by third-party research and plummeting stock prices, paint a damning picture of a company that allegedly prioritized short-term gains over transparency.

The opportunity to recover losses hinges on swift action. Even those who cannot serve as lead plaintiff can still join the class action—but only if they act before the deadline. With prominent law firms at the helm and a mountain of evidence against QUBT, this case could set a precedent for holding quantum computing firms accountable. For investors, the message is clear: don’t let this chance slip away.

As the saying goes, in investing, timing is everything—and this time, it’s the difference between standing on the sidelines or fighting for justice.