Amid a turbulent period for quantum computing stocks, Quantum Computing Inc (NASDAQ:QUBT) is under scrutiny following allegations of issuing misleading press releases. The company’s stock experienced a 3.49% decline in pre-market trading on Friday, as per Benzinga Pro.
What Happened: The Capybara Research report alleges that Quantum Computing’s CEO has been releasing promotional statements that exaggerate the company’s quantum capabilities and customer interactions. These accusations coincide with a lawsuit claiming the company fabricated sales deals.
The report highlights interviews with former employees and other sources, suggesting that for years, Quantum Computing has been involved in false press releases and sham deals with undisclosed related parties. One example is the letter of intent to acquire Millionways Inc., an AI firm with alleged undisclosed ties to Quantum Computing.
The report further claims a $500,000 payment to Millionways is unlikely to be repaid. Additionally, a deal with Quad M, an OTC-listed company with a history of stock fraud, also allegedly involved undisclosed connections. The CEO of Quantum Computing Inc. was a director at Quad M, and co-founders were linked to Quad M insiders. A memorandum of understanding with Quad M, projecting revenue, reportedly failed to generate any income.
“Quantum Deception. QUBT Is a rampant fraud. We are short and think shareholders will be left with nothing when all is done,” Capybara Research said.
Quantum Computing has yet to respond to Benzinga’s queries.
Why It Matters: The allegations against Quantum Computing Inc. come at a time when the quantum computing sector is experiencing significant attention and growth. Recently, quantum computing stocks, including Quantum Computing Inc., saw a surge in pre-market trading on Thursday, with QUBT rising by 15.58% following Microsoft Corp.’s (NASDAQ:MSFT) call for businesses to prepare for a “quantum-ready” future by 2025. This optimism reflects the sector’s potential to solve complex problems and create new business value, as highlighted by Mitra Azizirad, Microsoft’s president and COO of strategic missions and technologies.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
