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Business

QuantumScape CEO mulls authorized response to scathing brief vendor report

QuantumScape could take legal action after it was attacked in a scathing report by activist short seller Scorpion Capital.

“We are definitely going to take a look,” said Jagdeep Singh, managing director of QuantumScape, when CNBC’s Jim Cramer asked if the company would consider filing a lawsuit against the company.

“Some of the points there are simple, just absurd. Absurd to the point where there are … things that we want to take legal action on.”

Singh appeared on “Mad Money” Friday, the day after Scorpion published the short report. In the 188-page report, Scorpion accused QuantumScape, released in November through a blank check association, of acting as a “pump and dump SPAC”. It even compared the company to Theranos, the disgraced healthcare technology startup.

QuantumScape shares fell more than 12% after the information was released. The stock fell again on Friday, contributing to a 28% decline in less than two weeks.

“We don’t want to be too distracted either, but you know we feel pretty good where we are,” said Singh.

The battery company said it stood by the data it presented to investors and will continue to build a battery for its customers like Volkswagen, who recently invested an additional $ 100 million in the company.

QuantumScape argued that Scorpion was motivated to release the report because it could benefit financially from the subsequent price decline. Investors who want to make a profit on a sharp drop in prices are known as short sellers.

“We have always been fairly transparent about what we have and what work still needs to be done,” said Singh. “That’s one of the things we are honestly proud of. We believe we have been the most transparent of all solid-state battery companies.”

Categories
Politics

White Home mulls lifting mental property defend

Vials containing the Janssen Coronavirus Disease (COVID-19) vaccine from Johnson & Johnson.

Johnson & Johnson via Reuters

The White House is considering suspending intellectual property protection for Covid-19 vaccines and treatments due to pressure from developing countries and subsequent support from progressive lawmakers, according to three sources familiar with the matter.

A temporary removal of intellectual property protection would apply to any medical technology used to treat or prevent Covid-19. South Africa and India have formally asked the World Trade Organization to waive protection until the pandemic is over, but the issue has been brought in with no resolution.

The White House convened a deputy policymakers’ meeting on March 22, a senior administration official said, but they did not make a final decision.

The White House review comes in response to a letter sent by House Spokeswoman Nancy Pelosi in late March, urging the government to investigate the issue after several Democratic colleagues – including Oregon Rep. Earl Blumenauer, Rosa DeLauro from Connecticut and Jan Schakowsky from Illinois. pointed it out to her. The letter was not published. However, a senior adviser said Pelosi supports the position of its members in favor of such a waiver, even temporarily.

“The view is ‘we’re not safe until the world is safe,'” one of the sources said of support for progressives on Capitol Hill.

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The move would allow other countries to replicate existing vaccines. The USA has so far approved three vaccine shots: one from the American company Pfizer and BioNTech in Germany, one from the US company Moderna and one from the American company Johnson & Johnson.

Concern has grown over the US and a handful of other wealthy countries who have rights to a disproportionate share of the world’s vaccine supply while other nations struggle to vaccinate their people.

The Hill initially reported support for the move from progressive lawmakers.

The US Trade Representative’s office, which is expected to deliver a final verdict to the World Trade Organization, said saving lives and ending the pandemic remained “America’s top priority”.

“As part of the rebuilding of our alliances, we are examining all possibilities to coordinate with our global partners and assess the effectiveness of this specific proposal based on its real potential to save lives,” USTR spokesman Adam Hodge told CNBC.

The pharmaceutical industry has decided against the waiver of patent protection. It fears that this will undermine innovation to fight future diseases.

CNBC contacted Pfizer, Moderna, and Johnson & Johnson for comment.

Clete Willems, former deputy director of the National Economic Council, said lifting the protection would set a dangerous precedent for technology sharing.

“The government must stay away from this trap, which would undermine decades of US policy against forced technology transfers to countries like China and not directly increase vaccine distribution,” Willems, now a partner at Akin Gump, told CNBC. “The model they are pursuing with their quad partners is more promising.”

Ahead of a March 12 meeting, the Quad – a group from the United States, India, Japan, and Australia looking to counter China’s influence – announced a complex financing deal to improve vaccine manufacturing in the Indo-Pacific. where there has been a shortage. The group aims to deliver up to 1 billion vaccines by 2022.

Nearly 19% of American adults and about 15% of the total US population are fully vaccinated, according to the Centers for Disease Control and Prevention.

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