Kaskela Law LLC announces that it is investigating IonQ, Inc. (“IonQ” or the “Company”) (NYSE: IONQ), f/k/a dMY Technology Group, Inc. III, on behalf of the Company’s long-term shareholders.
Recently a shareholder class action complaint was filed against IonQ and certain of the Company’s senior executive officers (“Defendants”) on behalf of certain investors who purchased shares of the Company’s stock between March 7, 2021 and May 2, 2022.
According to the complaint, dMY Technology Group, Inc. III (“dMY”) was a publicly traded blank check company, also known as a special purpose acquisition company (“SPAC”), formed for the purpose of effecting a to-be-determined business combination. On March 8, 2021, dMY and a private quantum computing hardware and software development company, IonQ, Inc. (“Legacy IonQ”), issued a press release announcing their plan to bring Legacy IonQ public via a merger between dMY and Legacy IonQ (the “Business Combination”). The PowerPoint “roadshow” investor presentation (“Roadshow Presentation”) touted to investors that Legacy IonQ (and thus IonQ) had an “Unparalleled Technological Advantage” because it had a “32 qubit quantum computer with an expected quantum volume of 4,194,304, smashing the record for most powerful quantum computer” that was “32,000x more powerful than competing quantum systems.”
The complaint alleges that Defendants saturated the market with a flood of statements that were false and/or misleading statements because they failed to disclose that IonQ did not have a 32-qubit quantum computing system. In addition, the complaint alleges that Defendants induced investors to buy into and/or approve the Business Combination by failing to disclose that (i) the Company’s extant computing system was nowhere near ready to be miniaturized, a key element of IonQ’s value proposition; (ii) Defendants had been misleading investors about its systems’ error rates and error correction performance; and (iii) an abrupt 300% increase in expected “contract bookings” shortly before the shareholder vote was solely attributable to a transaction with the Company’s longstanding benefactor the University of Maryland (“UMD”).
Finally, the complaint details how, on May 3, 2022, Scorpion Capital published a report asserting that the Company did not have a 32 qubit computer, that its existing systems were nowhere near miniaturization, that the Company had misled investors about its system’s error rates and error correction, and that the Company had misrepresented the source of its purported contract bookings increase. Following this news, shares of the Company’s stock declined approximately 10% in value.
The investigation seeks to determine whether the members of IonQ’s board of directors violated the securities laws or breached their fiduciary duties to the Company and its stockholders in connection with the above alleged misconduct.
IonQ shareholders who purchased or acquired shares of the Company’s common stock prior to May 3, 2022 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750, or by completing the form on this page, for additional information about this investigation and their legal rights and options.