Arqit Quantum Inc. f/k/a Centricus Acquisition Corp. Class Action Lawsuit - ARQQ
- Company Name
- Arqit Quantum Inc.
- Stock Symbol
- ARQQ; ARQQW
- Class Period
- September 7, 2021 to April 18, 2022, and/or all holders of Centricus securities as of July 26, 2021
- Motion Deadline
- July 5, 2022
- Eastern District of New York
The Arqit class action lawsuit seeks to represent purchasers of Arqit Quantum Inc. f/k/a Centricus Acquisition Corp. (NASDAQ: ARQQ; ARQQW) securities between September 7, 2021 and April 18, 2022, inclusive (the “Class Period”) and/or all holders of Centricus securities as of the record date for the special meeting of shareholders held on August 31, 2021 to consider approval of the merger between Arqit and Centricus (the “Merger”) and entitled to vote on the Merger. The Arqit class action lawsuit charges Arqit and certain of its top executive officers with violations of the Securities Exchange Act of 1934 and is captioned Glick v. Arqit Quantum Inc. f/k/a Centricus Acquisition Corp., No. 22-cv-02604 (E.D.N.Y).
If you suffered significant losses and wish to serve as lead plaintiff of the Arqit class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at email@example.com. Lead plaintiff motions for the Arqit class action lawsuit must be filed with the court no later than July 5, 2022.
CASE ALLEGATIONS: Arqit is a cybersecurity company that has purportedly pioneered a unique quantum encryption technology. Arqit alleged its quantum encryption technology would be secure against current and future forms of cyberattacks, including from a quantum computer. Centricus was a special purpose acquisition corporation (“SPAC” or blank check company) formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. Prior to the Merger, Centricus shares traded on the NASDAQ under the ticker symbol CENHU.
The Arqit class action lawsuit alleges that defendants made false and/or misleading statements and/or failed to disclose that: (i) Arqit’s proposed encryption technology would require widespread adoption of new protocols and standards for telecommunications; (ii) British cybersecurity officials questioned the viability of Arqit’s proposed encryption technology in a meeting in 2020; (iii) the British government was not an Arqit customer but, rather, providing grants to Arqit; (iv) Arqit had little more than an early-stage prototype of its encryption system at the time of the Merger; and (v) as a result, defendants’ statements about its business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On April 18, 2022, The Wall Street Journal published a story entitled: “British Encryption Startup Arqit Overstates Its Prospects, Former Staff and Others Say.” The Wall Street Journal revealed, among other things, that Arqit’s “signature product was an early-stage prototype unable to encrypt anything in practical use,” Arqit’s encryption technology “might never apply beyond niche uses, numerous people inside and outside the company warned, unless there were a major overhaul of internet protocols,” “British cybersecurity officials questioned the viability of Arqit’s proposed approach to encryption technology,” “[t]he U.S. National Security Agency and the [National Counterintelligence and Security Center] published separate assessments in recent years warning against using satellite-based encryption systems like those Arqit is proposing,” “[t]he encryption system . . . depends on the broad adoption of new protocols and standards for telecommunications, cloud computing and internet services that currently aren’t widely supported,” and that “[t]he people familiar with the matter said that the bulk of [Arqit’s] committed revenue isn’t from selling its product and that at its public launch, [Arqit] had little more than an early-stage prototype of its encryption system.” On this news, the price of Arqit stock fell by more than 17%, damaging investors.
Robbins Geller has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance. Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors. The rise in blank check financing poses unique risks to investors. Robbins Geller’s SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Arqit securities during the Class Period and/or all holders of Centricus securities as of the record date for the special meeting of shareholders held on August 31, 2021 to consider approval of the Merger and entitled to vote on the Merger to seek appointment as lead plaintiff in the Arqit class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Arqit class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Arqit class action lawsuit. An investor’s ability to share in any potential future recovery of the Arqit class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.