Quantum computing company IonQ has prevailed in an appeal related to investor demands for compensation over financial losses.
On the 8th, the U.S. Court of Appeals for the Fourth Circuit ruled in favor of IonQ, stating that “an anonymous, self-interested short-seller report alone cannot adequately substantiate allegations of corporate fraud.”
Previously, short-selling firm Scorpion Capital had released a report in 2022 questioning IonQ’s technological capabilities. Scorpion Capital accused IonQ of fraud, even raising suspicions about the academic credentials of its executives.
Following the report, investors sold off IonQ shares in large volumes, causing the stock price to plummet. One investor filed a lawsuit, claiming that IonQ had deceived investors and caused financial losses, citing Scorpion Capital’s report as evidence.
However, the court dismissed the plaintiff’s claims, ruling that they lacked sufficient basis. The plaintiff then appealed the decision, leading to this latest ruling.
IonQ was founded in 2015 by Duke University professors Jungsang Kim and Chris Monroe. The company is advancing the commercialization of quantum computers using trapped-ion technology, which utilizes electromagnetic fields to hold charged atoms (ions) in place. Major investors include Samsung Electronics, Hyundai Motor, Google Ventures, and Amazon Web Services (AWS).
