ARQIT QUANTUM INC. SHAREHOLDERS HAVE AN OPPORTUNITY TO RECOVER THEIR INVESTMENT LOSSES
Arqit Quantum Inc.
Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired Arqit Quantum Inc. (“Arqit” or the “Company”) (NASDAQ: ARQQ, ARQQW) securities between September 7, 2019 and April 18, 2022, inclusive. The lawsuit seeks to recover Arqit shareholders’ investment losses.
If you purchased securities in Arqit Quantum Inc. between September 7, 2019 and April 18, 2022, inclusive, and would like to discuss your legal rights and/or options, please click “Join Class Action” above.
Arqit is a cybersecurity company that has pioneered a unique quantum encryption technology. Arqit claimed its quantum encryption technology would be secure against current and future forms of cyberattacks, including from a quantum computer.
On May 28, 2021, Arqit filed with the SEC a Form F-4 Merger Proposal Registration (the “Proxy Statement”) for the Merger. Then, on July 30, 2021, Arqit filed with the SEC a prospectus (the “Prospectus”) for the Merger, which forms part of the Proxy Statement.
According to the Complaint, the Proxy Statement contained a Risk Factors section which failed to discuss the risks to Arqit surrounding the adoption of new communications technologies necessary for Arqit’s encryption technology; namely, that Arqit needed certain new protocols and standards for telecommunications, cloud computing, and internet services that currently were not supported.
Plaintiff also alleges that throughout the Class Period, 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 price declined over 17% to close at $12.49 per share on April 18, 2022.
If you wish to serve as lead plaintiff, you must move the Court no later than July 5, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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