The complaint asserts causes of action for market manipulation and conspiracy to commit market manipulation under New York General Business Law Section 339, and for defamation, seeking damages over $5.69 million, together with exemplary damages.

As alleged in the complaint, on or about June 29, 2026, White Diamond published a report concerning the Company that contained false, misleading, and disparaging statements about the Company’s business and its Chief Executive Officer. The complaint alleges that White Diamond markets itself publicly as "an Independent institutional-grade research" firm, while burying on a tertiary webpage on its own site it discloses that White Diamond "along with its clients, affiliates, and related entities, may have a short position in the securities discussed and stand to realize significant gains in the event that the price of the stock declines." The complaint further alleges, that both White Diamond and Mr. Gefvert likely profited from the effects of the report through short positions in QUCY.

The complaint further alleges that Stocktwits, which the Company had retained to disseminate its business and press releases, made a deliberate editorial decision to publish and amplify the White Diamond report through the "News" section of its platform to its more than five million registered users, and subsequently pushed the content onto Apple Stocks and Yahoo! Finance, making it available to hundreds of millions of additional readers. According to the complaint, at no point in its publication, dissemination, or accompanying commentary did Stocktwits or its staff writer include any disclaimer regarding White Diamond’s position as a proprietary short-selling market participant. The complaint alleges that this omission led readers to the false impression that White Diamond was an independent research firm with no financial interest in a decline in QUCY’s share price, and that Stocktwits published the report with reckless disregard for its truth or falsity.

The complaint alleges that between the market open on June 26, 2026 and the market close on June 30, 2026, QUCY securities declined approximately 13.7%, and that from June 29, 2026 through June 30, 2026, QUCY’s reduced share price resulted in a decline exceeding approximately $5.69 million in market capitalization. The Company is represented by Morrison Cohen LLP.