How This $4 Stock is Taking on Wall Street's Big Banks with a $700 Million Lawsuit

What’s Happening?

Quantum BioPharma Ltd. (NASDAQ: QNTM), a small biopharmaceutical company with an $8 million market cap, has launched a $700 million lawsuit against several of Wall Street’s largest financial institutions. Allegations center on "spoofing," a manipulative tactic that Quantum claims artificially suppressed its stock price, leading to massive losses for the company and its shareholders.

The lawsuit, filed in the U.S. District Court for the Southern District of New York, names CIBC World Markets, RBC Dominion Securities, and other unnamed parties. The alleged spoofing occurred from January 2020 to August 2024, during which Quantum's stock price fell over 98%, from over $460 per share (adjusted for splits) to just $7.55 by October 2024.

Zeeshan Saeed, CEO of Quantum BioPharma, stated:

“We believe that the Company and its shareholders have suffered immensely from the Defendants’ trading practices. We will use all means available to us to get justice for our shareholders.”

The lawsuit alleges that these Wall Street giants prioritized their profits at the expense of Quantum's shareholders, distorting the market and eroding trust in financial fairness.

Who Should Join and How to Get Involved

If you owned Quantum BioPharma shares between January 2020 and August 2024, you may be eligible to join the lawsuit. Quantum is actively encouraging its shareholders to support the case by documenting their losses.

To join, go to Quantum BioPharma's dedicated lawsuit page and scroll to the bottom to find the form. By participating, shareholders can strengthen the case while standing to benefit if damages are recovered.

The Legal Heavyweights Taking on Wall Street

Successfully challenging Wall Street’s biggest banks requires the best in the business. Quantum BioPharma has enlisted two powerhouse law firms: Freedman Normand Friedland LLP and Christian Attar, both renowned for their expertise in securities litigation and market manipulation cases.

Freedman Normand Friedland LLP: Delivering Historic Wins

Based in New York, Miami, and Boston, Freedman Normand Friedland has a proven track record of securing massive settlements:

• $284 million in an antitrust settlement against top U.S. universities.
• $140 million awarded by a jury in a 2021 securities case.

Velvel Freedman, co-lead counsel on the Quantum case, stated:

“Spoofing erodes trust in financial markets and is illegal. Our job is to ensure that Quantum BioPharma and its shareholders receive the justice they deserve.”

Freedman’s extensive experience and the firm’s record of winning landmark cases make them an invaluable asset to Quantum’s fight.

Christian Attar: 20 Years of Fighting Wall Street

Christian Attar, based in Houston, Texas, has spent two decades taking on financial giants. Their team has recovered millions for companies impacted by stock manipulation, including cases involving Overstock.com and Taser International, both of which saw significant share price rebounds after their lawsuits.

James Wes Christian, a partner at Christian Attar, added:

“This could be one of the top five biggest spoofing cases we’ve ever handled. The evidence we’ve reviewed is compelling, and we’re confident in achieving a favorable outcome for Quantum and its shareholders.”

The combined strength of these two firms, both working on a contingency basis (meaning they only get paid if they win), demonstrates their confidence in the evidence.

Wall Street’s History of Skimming from Main Street

Predatory practices by major financial institutions have long harmed smaller, retail investors. Spoofing—manipulating market prices by placing and canceling large fake orders—is just one of the tactics used to distort markets for their gain while leaving victims at a loss.

In recent years, regulators have penalized some of the largest banks for engaging in such schemes, often with significant fines:

• Citigroup (NYSE: C) (2017) Was fined $25 million by the U.S. Commodity Futures Trading Commission (CFTC) for spoofing in the metals and Treasury futures markets.
• J.P. Morgan (NYSE: JPM) (2020) Paid a record $920 million for spoofing across the precious metals and Treasury markets, marking one of the largest spoofing penalties in history.
• Bank of America (NYSE: BAC) (2023) Was fined $24 million for spoofing-related violations that undermined market transparency and fairness.
• TD Securities (TSX: TD) (2023) Faced penalties as part of a broader investigation into spoofing, with fines totaling $40 million for their role in market manipulation.

While these fines appear substantial, they are often viewed as little more than the cost of doing business for major financial institutions. For retail investors and smaller companies, however, the consequences are far-reaching, including manipulated share prices, reduced confidence, and significant financial harm.

This history highlights the urgent need for greater accountability and transparency in financial markets, ensuring that predatory practices like spoofing are no longer tolerated.

Media Attention and Growing Coverage

The lawsuit has captured the attention of major media outlets, with The Globe and Mail publishing an in-depth article that highlights the case’s significance.

The Globe and Mail article stated:

“CEO and Co-Chairman Zeeshan Saeed explains that this isn’t just a shot in the dark—industry experts estimate that damages could exceed $1 billion for $QNTM.

In addition, Agoracom, a leading platform for small-cap news, has featured the case in a detailed interview with Quantum executives. In the interview, CEO Zeeshan Saeed discusses how the alleged manipulation impacted the company’s stock price and its ability to raise capital. Watch the full Agoracom interview here.

Quantum’s bold legal move has also sparked discussions in online investor forums, where shareholders are voicing their support for the company’s efforts to hold Wall Street accountable.

What It Could Mean for the Stock

A successful outcome in Quantum BioPharma’s lawsuit could have a transformative impact on its stock. Here’s how the potential damages break down:

- Potential Recovery: If Quantum recovers 25% of the $700 million claim, that equals $175 million.

- After Legal Fees: Assuming half of the recovery is allocated to the lawyers, Quantum would still net $87.5 million.

- Market Cap Impact: With an $8 million market cap, this would represent a 10x increase, even before accounting for renewed investor confidence and market re-ratings.

The prospect of such a windfall could attract new investors, and significantly boost Quantum’s valuation.  Historical cases, such as those involving Overstock.com and Taser International, demonstrate how companies can achieve massive share price recoveries following litigation victories. These funds could also fund Quantum’s human clinical trials for their multiple sclerosis drug, Lucid-MS. 

Conclusion: A $4 Stock Fighting Back

Quantum BioPharma’s lawsuit against Wall Street’s biggest banks is about more than just recovering damages—it’s a fight for fairness in the financial markets. With $700 million at stake, an $8 million market cap, and the backing of two of America’s most successful law firms, Quantum is taking a stand on behalf of its shareholders.

This case represents a unique opportunity for investors. Should Quantum prevail, the upside could be immense, both for the company and for those who join the lawsuit to seek justice.

 

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