Shareholder rights law firm Robbins LLP is investigating Arqit Quantum Inc. (NASDAQ: ARQQ) and its officers and directors to determine whether they breached their fiduciary duties and violated securities laws by making false and misleading statements in its offering documents in support of its merger with Centricus Acquisition Corp (CENH). Arqit claims to be a cybersecurity company that has pioneered a unique quantum encryption technology.
If you would like more information about our investigation of Arqit Quantum Inc.'s misconduct, click here.
What is this Case About: According to the complaint filed against Arqit, in connection with the merger with Centricus, Arqit alleged its quantum encryption technology would be secure against current and future forms of cyberattacks, including from a quantum computer. Arqit also represented that it had "already signed major, long-term contracts for its services with large companies and government institutions."
However, defendants failed to disclose that Arqit’s proposed encryption technology would require widespread adoption of new protocols and standards for telecommunications, with British cybersecurity officials having questioned the viability of Arqit’s proposed encryption technology in a meeting in 2020. Further, the British government was not an Arqit customer but, rather, providing grants to Arqit, and Arqit had little more than an early-stage prototype of its encryption system at the time of the merger.
These facts became known on April 18, 2022, when The Wall Street Journal published an article titled, "British Encryption Startup Arqit Overstates Its Prospects, Former Staff and Others Say." On this news, Arqit share price fell $2.57 per share, or 17%, to close at $12.4 per share on April 18, 2022.
Next Steps: If you acquired shares of Arqit Quantum Inc. (ARQQ) f/k/a Centricus Acquisition Corp. between September 7, 2021 and April 18, 2022, or held Centricus securities and were entitled to vote on the merger, you have legal options. Contact Robbins LLP for more information.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
Contact us to learn more:
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About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Arqit Quantum Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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