Arqit Quantum Inc. (fka Centricus Acquisition Corp.)

Ticker: ARQQW, CENH, CENHU, CENHW

Class Period Start: 09/07/2021

Class Period End: 04/18/2022

Registration Deadline: 07/05/2022

A class action lawsuit has been filed in the USDC, E.D.N.Y. on behalf of purchasers of the securities of Arqit Quantum Inc. (f/k/a Centricus Acquisition Corp.)  (NASDAQ: ARQQ, ARQQW, CENH, CENHU, CENHW): (i) between September 7, 2021 and April 18, 2022, both dates inclusive (the “Class Period”); and/or (ii) 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 action seeks to recover damages for Arqit investors under the federal securities laws.
Arqit is a U.K. cybersecurity company that purports to have pioneered a unique quantum encryption technology which makes the communications links of any networked device secure against current and future forms of cyber attack, even an attack from a quantum computer. Arqit was formed via a merger between Arqit and Centricus Acquisition Corp. Prior to the Merger, Arqit was known as Arqit Limited. Centricus was a special purpose acquisition corporation.

Arqit went public in the U.S. on September 3, 2021, by merging with a special purpose acquisition company (“SPAC”).  At the time, the Company projected it would rapidly become highly profitable, projecting $660 million in revenue in 2025.  Shortly after the Company went public, the price of Arqit shares reached a high of $41.52.

On April 18, 2022, prior to the market opening, the Wall Street Journal published an article entitled, “British Encryption Startup Arqit Overstates Its Prospects, Former Staff and Others Say.”  The article reported that Arqit gave investors an overly optimistic view of its committed and future revenue and the readiness and workability of its encryption system.  According to the article, “[P]eople familiar with the matter said that the bulk of the company’s committed revenue isn’t from selling its product and that at its public launch, the company had little more than an early-stage prototype of its encryption system.”

On this news, the price of Arqit shares and warrants have fallen sharply during the trading day on April 18, 2022.  As of this writing, the stock price is down approximately 19% and the warrants price is down approximately 39%.

The Complaint alleges that Defendants throughout the Class Period and in the Proxy Statement issued in connection to the Merger made false and/or misleading statements and/or failed to disclose:
  • Arqit’s proposed encryption technology would require widespread adoption of new protocols and standards of for telecommunications;
  • British cybersecurity officials questioned the viability of Arqit’s proposed encryption technology in a meeting in 2020;
  • the British government was not an Arqit customer but, rather, providing grants to Arqit; (
  • Arqit had little more than an early-stage prototype of its encryption system at the time of the Merger; and
  • 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.

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