Freedman Normand Friedland Files Market Manipulation Case On Behalf of Quantum Biopharma

Rhea-AI Summary

Quantum Biopharma (Nasdaq: QNTM) has filed a market manipulation lawsuit against CIBC World Markets and RBC Dominion Securities. The complaint alleges that defendants engaged in 'spoofing' - placing sell orders they didn't intend to fill - to artificially lower the stock price over a four-year period. This manipulation allegedly occurred more than a thousand times, causing significant harm to both the company and shareholders. Quantum Biopharma claims it was forced to sell shares at artificially depressed prices during this period and is now seeking damages to compensate for losses.

Positive

• Legal action initiated to recover potential losses from alleged market manipulation
• Company taking proactive steps to protect shareholder value

Negative

• Company allegedly suffered financial losses from selling shares at artificially depressed prices
• Stock price potentially manipulated over a four-year period through spoofing
• Shareholder value potentially damaged due to alleged market manipulation

NEW YORK, Oct. 23, 2024 /PRNewswire/ -- On Sunday, Freedman Normand Friedland LLP ("FNF"), with co-counsel Christian Attar, filed a market manipulation case on behalf of firm client, Quantum Biopharma Ltd. (Nasdaq: QNTM) (CSE: QNTM), against CIBC World Markets, Inc. ("CIBC"), RBC Dominion Securities Inc. ("RBC"), and others.

In the complaint, Quantum Biopharma alleges that the defendants manipulated the price of its stock more than a thousand times over a four-year period, and that the defendants' manipulative trading practices caused significant harm to both Quantum Biopharma and its shareholders. Specifically, Quantum Biopharma alleges that the defendants repeatedly engaged in "spoofing"—a form of unlawful market manipulation whereby traders place sell-side orders they don't intend to fill, in order to put downward pressure on the price of a security so they can purchase it at an artificially low price. Quantum Biopharma further alleges that it was harmed by the defendants' "spoofing," because it sold shares of its stock during this period at artificially depressed prices.

Quantum Biopharma is seeking, among other forms of relief, damages to compensate it for its alleged losses.

About Freedman Normand Friedland LLP

Freedman Normand Friedland is a high-end 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.

Contact: media@fnf.law 

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SOURCE Freedman Normand Friedland LLP

FAQ

What is the market manipulation lawsuit filed by Quantum Biopharma (QNTM)?

Quantum Biopharma filed a lawsuit against CIBC World Markets and RBC Dominion Securities, alleging they manipulated the stock price through spoofing over a four-year period, causing the company to sell shares at artificially low prices.

What is spoofing in relation to Quantum Biopharma (QNTM) stock?

Spoofing is a form of market manipulation where traders place sell orders they don't intend to fill, creating downward pressure on the stock price to purchase shares at artificially low prices.

What damages is Quantum Biopharma (QNTM) seeking in their lawsuit?

Quantum Biopharma is seeking damages to compensate for losses incurred from selling shares at artificially depressed prices due to alleged market manipulation.