Investors in Quantum Computing Inc. (QUBT) have no shortage of law firms to choose from if they want to recoup their losses.
At least 10 law firms are now alleging that the company misled investors, fabricated revenue, and overstated its relationship with NASA.
Other claims include exaggerating the progress of its lithium factory and misrepresenting its technology’s capabilities — accusations stemming from two damning reports published in November 2024 and January 2025.
Iceberg Research didn’t hold back in its assessment, calling Quantum Computing Inc. a “perma-scam” while exposing alleged falsehoods surrounding the company’s factory.
“QUBT thrives on pumps and dumps but delivers little of substance,” the firm wrote. “All this time, the company has gone from one hype to another, only to time and again fail to deliver on its promises.”
Two months later, Capybara Research piled on, calling QUBT “a rampant fraud” in a separate report.
Capybara took particular issue with the company’s NASA ties, alleging QUBT grossly misrepresented the relationship in public statements.
“NASA confirmed to us that they have no relationship with QUBT beyond a single $26,000 ‘computer programming’ contract,” Capybara reported.
Both Iceberg and Capybara disclosed that they were shorting the stock.
Meanwhile, Quantum Computing Inc. has yet to publicly address the allegations.
Investors who purchased QUBT stock between March 30, 2020, and January 15, 2025, have until April 28, 2025, to join the lawsuit.
Wild stock swings but no profits
Despite multiple boom-and-bust cycles in its stock price, Quantum Computing Inc. has never turned a profit since trading on the Nasdaq.
Since 2020, the company has lost between $24 million and $38 million annually and had already racked up $17 million in losses by Q3 2024.
The stock has seen three major spikes, each followed by a crash.
One of its biggest surges came between October 11 and December 27, 2024, when shares exploded from $0.69 to $18.35 after the company announced its NASA contract.
But those gains evaporated quickly after Capybara Research accused QUBT of misrepresenting the deal. The stock collapsed to $4.73 as of Tuesday’s close.
Despite the volatility, Ascendiant Capital’s Edward Woo maintained a “buy” rating on the stock in November 2024 with a price target of $8.79.
Peculiar history
QUBT’s history is as peculiar as its stock swings.
According to SEC filings, Quantum Computing Inc. was created through a 2018 merger between a defunct printer cartridge company called Ticketcart and a failed beverage company called Innovative Beverage.
Innovative Beverage had been inactive for five years before its trading ticker was revived for the newly rebranded Quantum Computing Inc.
The company claimed the rebrand reflected a shift in focus, moving from the OTC market to the Nasdaq three years later.
Now, with a class-action lawsuit looming, investors are left wondering whether Quantum Computing Inc. was ever the real deal to begin with.
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