Quantum BioPharma Secures Major Legal Victory in International Dispute with Former CEO

Quantum BioPharma Ltd. (NASDAQ: QNTM) has achieved a decisive legal victory in its international dispute with former CEO Dr. Raza Bokhari, with favorable rulings from both Canadian and U.S. judicial systems. The Court of Appeal for Ontario completely dismissed Bokhari's reconsideration motion, upholding his 2021 termination for cause. This decision follows previous legal proceedings where an arbitration panel ruled against Bokhari's wrongful dismissal claims, resulting in an initial cost award of approximately C$2.81 million plus interest that has since grown to exceed C$3 million through subsequent court rulings.

The company's legal success extends beyond Canadian borders, with Quantum BioPharma initiating collection proceedings in the United States that led to a favorable judgment from the U.S. District Court for the Eastern District of Pennsylvania. Despite these comprehensive legal defeats, Bokhari maintains an ongoing appeal secured through a supersedeas bond exceeding $2.8 million. This legal resolution represents a critical milestone for Quantum BioPharma as it continues to focus on its core mission of developing treatments for neurodegenerative, metabolic, and alcohol misuse disorders.

Through its subsidiary Lucid Psycheceuticals Inc., the company is advancing Lucid-MS, a promising compound designed to prevent and reverse myelin degradation in multiple sclerosis preclinical models. The legal victory provides stability as Quantum BioPharma pursues its diversified business strategy, which includes maintaining strategic investments and partnerships such as its 25.71% ownership stake in Celly Nutrition Corp. and royalty agreement for the UNBUZZD product. These multifaceted interests demonstrate the company's comprehensive approach to pharmaceutical innovation and business development while navigating complex international legal challenges.