GRABAR LAW OFFICE INVESTIGATES POTENTIAL CLAIMS AGAINST OFFICERS AND DIRECTORS OF ARQIT QUANTUM INC. (NASDAQ: ARQQ)
A federal securities fraud class action complaint has been filed on behalf of shareholders of Arqit Quantum Inc. alleging that Defendants made misleading statements about Arqit's business because: (1) Arqit's proposed encryption technology would require widespread adoption of new protocols and standards of for telecommunications; (2) British cybersecurity officials questioned the viability of Arqit's proposed encryption technology in a meeting in 2020; (3) the British government was not an Arqit customer but, rather, providing grants to Arqit; and (4) Arqit had little more than an early-stage prototype of its encryption system at the time of the Merger.
On April 18, 2022, The Wall Street Journal (the "WSJ") published an article entitled, "British Encryption Startup Arqit Overstates Its Prospects, Former Staff and Others Say." The WSJ article stated, in part: "When the company secured its Nasdaq listing last autumn, its revenue consisted of a handful of government grants and small research contracts, and its signature product was an early-stage prototype unable to encrypt anything in practical use, according to [former employees and other people familiar with the company]." Further, "[t]he encryption technology the company hinges on—a system to protect against next-generation quantum computers—might never apply beyond niche uses, numerous people inside and outside the company warned, unless there were a major overhaul of internet protocols." On this news, the price of Arqit stock fell over 17%.
Current Arqit shareholders who have held shares of Arqit stock (ARQQ, ARQQW), f/k/a Centricus Acquisition Corp. ("Centricus") (CENH, CENHU, CENHW) since at least on or before September 7, 2021 can seek corporate reforms, the return of funds back to company coffers, and potentially a court approved incentive award if appropriate.
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