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TORONTO - Quantum BioPharma Ltd. (NASDAQ:QNTM), currently valued at $64 million with shares trading at $17.18, announced Wednesday a whistleblower program offering rewards of up to $7 million for evidence of stock price manipulation in connection with its ongoing lawsuit against major financial institutions. According to InvestingPro data, the company’s stock has shown remarkable resilience with a 318% return over the past year despite ongoing challenges.
The biopharmaceutical company is seeking more than $700 million in damages in a lawsuit against several financial institutions, including CIBC World Markets and RBC Dominion Securities, alleging they manipulated or allowed clients to manipulate the company’s stock price between January 2020 and August 2024.
According to the company, its share price fell from approximately $460 in early 2020 to less than $10 by late 2024, which it attributes to illegal trading tactics such as spoofing - the practice of placing and quickly canceling orders to create false market impressions. InvestingPro analysis reveals concerning fundamentals, including a weak financial health score and short-term obligations exceeding liquid assets, with a current ratio of 0.78.
The whistleblower reward will be paid from net proceeds of the lawsuit if information provided significantly contributes to a judgment or settlement. Eligible evidence includes proof of illegal spoofing trades, deliberate spreading of false information, or improper share lending practices.
Current company employees, law enforcement officials, and individuals who obtained information unlawfully are ineligible for the reward. The company stated it will maintain confidentiality of informants to the extent permitted by law.
The lawsuit is being handled by law firms Christian Attar and Freedman Normand Friedland LLP on a contingency basis, meaning Quantum BioPharma bears no upfront legal costs.
Quantum BioPharma develops treatments for neurodegenerative and metabolic disorders. The company noted in its press release that the whistleblower program does not interfere with SEC whistleblower programs, and individuals remain free to report directly to regulatory authorities. Looking ahead, InvestingPro data indicates analysts expect continued challenges, with a projected EPS of -$9.85 for fiscal year 2025. Subscribers can access 8 additional ProTips and comprehensive financial metrics to better understand the company’s outlook.
In other recent news, Quantum BioPharma Ltd. announced the establishment of October 27, 2025, as the record date for distributing contingent value rights (CVRs) to its Class B Subordinate Voting Shareholders. These CVRs are linked to the company’s ongoing legal action, potentially entitling holders to a portion of any net proceeds from the lawsuit alleging stock price manipulation. Additionally, Quantum BioPharma received final toxicity reports for its multiple sclerosis drug candidate, Lucid-21-302, which will support its Investigational New Drug application for a phase 2 clinical trial. In a strategic move, the company appointed Dr. Jack Antel as a clinical advisor for its MS program, leveraging his expertise in neurology.
Furthermore, Quantum BioPharma’s shareholders approved all resolutions at the recent annual general meeting, reflecting strong shareholder support. Health Canada has granted a product license for Quantum’s natural health product, Qlarity, allowing its sale in Canada for various health benefits. These developments mark significant progress in Quantum BioPharma’s legal, clinical, and product licensing endeavors.
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