IonQ, Inc. (IONQ) Failed to Disclose Material Information about the Development and Effectiveness of its Computers to Shareholders
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired IonQ (NYSE: IONQ) securities between March 30, 201 and May 2, 2022, for violations of the Securities Exchange Act of 1934. IonQ purports to “develop quantum computers designed to solve the world’s most complex problems.”
According to the complaint, on September 30, 2021, IonQ became a public entity via business combination with dMY Technology Group, Inc. III, a special purpose acquisition company. On May 3, 2022, Scorpion Capital released a research report alleging, among other things, that IonQ is a “scam built on phony statements about nearly all key aspects of the technology and business.” It further claimed that the Company reported “[f]ictitious ‘revenue’ via sham transactions and related-party round-tripping.” On this news, the Company’s stock fell $0.71, or 9%, to close at $7.15 per share on May 3, 2022, on unusually heavy trading volume.
During the class period, defendants failed to disclose to investors that: (1) IonQ had not yet developed a 32-qubit quantum computer; (2) the Company’s 11-qubit quantum computer suffered from significant error rates, rendering it useless; and (3) IonQ’s quantum computer is not sufficiently reliable, so it is not accessible despite being available through major cloud providers. Defendants also failed to disclose that a significant portion of IonQ’s revenue was derived from improper round-tripping transactions with related parties.
Next Steps: If you acquired shares of IonQ, Inc. (IONQ) securities between March 30, 2021 and May 2, 2022, you have until August 1, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.