Quantum Biopharma offers $7M(U.S.) whistleblower reward

Executive Summary

• Quantum Biopharma announced a public whistleblower program offering up to US$7 million for verifiable information that leads to a final judgment or settlement in its stock‑manipulation lawsuit.
• The lawsuit seeks more than US$700 million in damages against major financial institutions alleged to have spoofed the company’s shares between Jan 2020 and Aug 2024.
• Rewards will be paid from net proceeds of the lawsuit once resolved and are subject to board‑approved discretion, confidentiality requirements, and eligibility exclusions.

Key Details

• Reward Amount: Up to US$7 million payable to individuals or entities providing definitive, verifiable proof of market manipulation that contributes materially to a final, non‑appealable judgment or binding settlement.
• Eligibility Restrictions: Current directors, officers, employees; law‑enforcement/regulatory officials acting in official capacity; persons who obtained information unlawfully; and those submitting false or fabricated data are excluded.
• Payment Source: Rewards will be funded from the net proceeds of the pending litigation, not from operating cash.
• Submission Channels: Email — [email protected]; Phone — 1‑833‑571‑1811.
• Legal Oversight: Program drafted with advice from multiple law firms, approved by the audit committee and board of directors.
• Lawsuit Overview:
• Plaintiffs: Quantum Biopharma Ltd. (plaintiff) vs. CIBC World Markets, RBC Dominion Securities, and other unnamed institutions.
• Allegations: Illegal “spoofing” – submission and cancellation of orders to manipulate share price.
• Damages Sought: > US$700 million; share price fell from ~US$460 (early 2020) to < US$10 (late 2024).
• Contingency Representation: Law firms Christian Attar and Freedman Normand Friedland LLP are on a contingency basis – no upfront legal fees for Quantum Biopharma.
• Scope of Information Sought: Evidence of spoofing trades, false information dissemination, failure to deliver shares, illegal lending of shares, or any instructions/inducements to manipulate the stock.
• Reward Allocation: May be split among multiple contributors; amount determined at company’s discretion based on significance and impact of the information.
• Confidentiality & Use: Information kept confidential unless required by law; used only after written consent from provider.
• Interaction with Regulatory Programs: Does not replace or interfere with SEC or Canadian whistleblower programs; participants may still pursue statutory awards.

Notable Quotes

(No direct quotes were provided in the release.)