Quantum Cyber Says Short-Seller Offered to Silence Reports in Exchange for Dropping $5.69M Lawsuit
QUCY has more than doubled off its 52-week low of $0.3 on light trading volume (0.2× avg).
Summary
Quantum Cyber disclosed an August 14 email from short-seller Adam Gefvert offering to stop publishing on QUCY and any David Lazar company if the company drops its $5.69M defamation lawsuit. The company calls the offer coercive and blackmail-style, says it will not withdraw the suit, and will place the email into the court record. This escalates an ongoing legal fight with White Diamond Research and Stocktwits, and the company is framing it as evidence that short-seller reports are being used as leverage rather than objective analysis. The company also ties the matter to federal enforcement actions against short-sellers, citing the Andrew Left/Citron case. With a $114M market cap, no revenue, and a going concern warning from the latest 10-Q, this legal battle adds another layer of uncertainty for shareholders.
At the time of this announcement, QUCY was trading at $1.36 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $114.3M. The 52-week trading range was $0.30 to $4.93. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.