(MENAFN- AsiaNet News)

• The stock surged as Canadian media spotlight renewed scrutiny of Quantum's alleged market-spoofing case.
• The coverage drew fresh attention to the company's $700 million federal lawsuit over price manipulation.
• Lucid-MS's Phase 1 safety data in August supported advancement toward patient trials.

Quantum BioPharma shares surged on Tuesday after a Canadian media investigation spotlighted the company's claims that years of alleged stock spoofing depressed its valuation and harmed its lead multiple-sclerosis program. The renewed attention came as CTV's investigative flagship W5 began airing a three-part series examining Quantum's lawsuit seeking more than $700 million in damages.

The stock closed up 30% at $8.04 on Tuesday and added another 5% in after-hours trading.

CTV Investigation Highlights Company's Manipulation Claims

The W5 series focuses on Quantum's allegation that its shares were repeatedly manipulated through illegal“stock spoofing” conducted by CIBC World Markets, RBC Dominion Securities and others from January 2020 to August 2024. The practice, which involves placing and canceling non-bona fide buy and sell orders, is prohibited in both Canada and the U.S.

W5 reporter Jon Woodward previewed the first installment in an article titled“Was a Canadian company's multiple sclerosis research nearly derailed by 'market manipulation'?” The program began airing Part One on Tuesday, drawing renewed attention to Quantum's claims and its ongoing legal fight.

Quantum Alleges Banks Used Spoofing To Drive Shares Lower

Quantum filed its initial complaint in October 2024 in the U.S. District Court for the Southern District of New York and amended it in May after defendants moved to dismiss. The company alleges violations of the Securities Exchange Act, asserting that hundreds of spoofing events artificially pushed its stock lower.

Quantum said its shares traded above $460 on a split-adjusted basis in early 2020 with a market cap near $1 billion, compared with $7.55 by October 2024. The firm also maintains that additional banks or brokers may have been involved, but said it will not identify them until it has gathered sufficient evidence.

The law firms Christian Attar and Freedman Normand Friedland LLP are pursuing the case on a contingency basis after conducting an extensive investigation with industry experts.

Progress In Lucid-MS Program 

In August, Quantum BioPharma reported that its lead multiple sclerosis candidate, Lucid-MS, passed a key safety hurdle after a Phase 1 multiple-ascending-dose study found no safety or tolerability issues in healthy volunteers. The company said the clinical study report supported its plans to advance into patient efficacy trials.

Lucid-MS is a first-in-class, non-immunomodulatory neuroprotective compound designed to prevent or reverse myelin degradation, based on preclinical data. 

Stocktwits Users Eye A Sharp Rebound

On Stocktwits, retail sentiment for Quantum BioPharma was 'extremely bullish' amid a 3,400% surge in 24-hour message volume.

QNTM sentiment and message volume as of November 26 | Source: Stocktwits

One user predicted,“shorts will be covering tomorrow due to thanksgiving. Should see $18 soon.”

Another user said,“this one has been absolutely wrecked here but historically when the stocks this low it sees a violent move up. Watching closely here.”

Quantum BioPharma's stock has more than doubled so far in 2025.

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