Securities Fraud Claims: Quantum Computing Inc. (QUBT) faces allegations of overstating technological capabilities and deals.
Class Action Lawsuit: Rosen Law Firm filed suit on March 04, 2025, citing alleged misrepresentation of quantum breakthroughs.
Market Turbulence: After early surges, QUBT’s stock tumbled in 2025 as fraud probes intensified.
Quantum Computing Inc. (QUBT), traded on Nasdaq, has drawn scrutiny over potential securities fraud. As of March 08, 2025, multiple law firms and short-seller reports claim the company misstated its quantum and photonic capabilities, sparking questions about its rise and fall in the stock market.
QUBT emerged as a high-profile player in quantum and integrated photonics, signing contracts with organizations like NASA and touting breakthroughs in thin-film lithium niobate (TFLN) chips. Despite soaring more than 1,600% in 2024, QUBT’s fortunes changed dramatically in early 2025 once allegations surfaced that it had overhyped its technology and fabricated business dealings.
"rampant fraud"
— Capybara Research, January 16, 2025
A short-seller note from Capybara Research labeled QUBT a "rampant fraud", accusing it of misleading press releases and exaggerated collaborations. The report triggered a 7% share price drop on January 16, followed by deeper losses as investor confidence dipped.
Rosen Law Firm entered the fray on March 4, filing a class action lawsuit representing shareholders who acquired QUBT securities between March 30, 2020, and January 15, 2025. Legal filings indicate that QUBT might have artificially pumped its stock with overstated quantum achievements and undisclosed related-party agreements.
"feeding frenzy"
— X sentiment, March 4, 2025
Reports on X note at least nine law firms investigating QUBT, marking what some observers describe as a "feeding frenzy". The company’s stock slump is also tied to broader skepticism about the quantum industry’s near-term practicality. Comments from major tech figures, including Nvidia’s Jensen Huang, have caused waves of caution among investors.
Adding to the pressure, QUBT’s Q3 2024 financials indicated modest revenues of $101,000 against a net loss of $5.67 million, raising doubts about its operational substance. Critiques highlight the company’s pivot to a TFLN chip foundry, which some see as an attempt to shift focus away from its quantum claims. By March 07, 2025, QUBT closed at $5.43, reflecting a steep drop from its late-2024 highs.
Analysts note the combination of class action suits, short-seller critiques, and insider skepticism may deepen QUBT’s woes. Many investors remain on edge, awaiting official statements from the company that could clarify the status of its alleged TFLN foundry, NASA contracts, and other prominent deals.
