Quantum BioPharma Fights $700M Market Manipulation Case, Opposes Bank Dismissal Bid

Quantum BioPharma Ltd. (NASDAQ:QNTM) (CSE:QNTM) (FRA: 0K91) ("Quantum BioPharma" or the "Company"), a biopharmaceutical company dedicated to building a portfolio of innovative assets and biotech solutions, today announced that on July 31, 2025 it filed a memorandum of law in opposition to defendants' CIBC World Markets ("CIBC") and RBC Dominion Securities ("RBC") joint motion to dismiss in the United States District Court for the Southern District of New York. This reply can be accessed via the following link: Memorandum of Law as Filed.

This is Quantum's response to a memorandum of law that CIBC and RBC filed on June 16, 2025, in support of a joint motion to dismiss the Amended Complaint filed by Quantum BioPharma on May 31st, 2025. The amendment complaint filed by Quantum BioPharma allege that CIBC World Markets, RBC Dominion Securities, and others (the "Defendants") engaged in market manipulation schemes that violated Section 10(b) and Rule 10b-5(a) and (c) and Section 9(a) of the Securities Exchange Act of 1934. This lawsuit alleges that between 1st of January 2020, and 15th of August 2024 the Defendants and/or their customers used "spoofing" techniques to manipulate the share price of Quantum BioPharma shares. Quantum is seeking damages of more than $700 Million USD.

The Company has posted a copy of the memorandum of law in opposition reply to the motion to dismiss filed July 31, 2025, the amended complaint, as well as the original complaint, on its website on the Quantum vs Banks page. A copy of all the filings can be found at https://www.quantumbiopharma.com/quantum-biopharma-vs-banks.

The law firms Christian Attar and Freedman Normand Friedland LLP have agreed to take and file this case on a contingency basis and, as such, there will be no material financial pressure on the Company to bear the legal costs associated with this case. These law firms, working with industry experts, conducted an extensive investigation into the Defendants' conduct, and have concluded that there is sufficient evidence of market manipulation for the Company to pursue claims against the Defendants. The complaint details this evidence, which the Company alleges demonstrates that Defendants "spoofed" the market hundreds of times, thereby artificially depressing the price of the Company's stock repeatedly, resulting in harm both the Company and its investors.

The Company's stock in January 2020 was trading over $460 USD per share (taking into consideration post-splits or present terms) with a market cap approaching $1 Billion dollars.

The Company believes that, in addition CIBC and RBC, other banks/brokers are involved in this alleged market manipulation scheme in the Company's stock. The Company will refrain from naming these banks until more conclusive evidence is gathered.

The Company is open to dialogue and will always remain open to finding an amicable solution with the banks and brokers involved.