Check-Cap Responds to Misleading Attacks from MediPharm Labs

Author: Logan Wright Updated: 06-04-2025 07:10 AM

Check-Cap Condemns Deceptive Attacks

Check-Cap Ltd. (NASDAQ: CHEK) has taken a firm stand against what it describes as defamatory remarks from Chris Taves, the Chairman of MediPharm Labs. This action comes in a particularly sensitive context for Israeli companies amid challenging times.

Attacks Timed Unethically

The timing of Taves' allegations, reportedly made just 23 minutes before the commencement of Shabbat, raises serious ethical questions. Check-Cap believes that this tactic was deliberately employed to hinder their ability to respond effectively. Such behavior not only undermines the integrity of financial reporting but also exacerbates the volatility of the markets during turbulent periods.

Statements Lacking Factual Basis

In a press release dated May 23, 2025, Taves made claims about deficiencies within Check-Cap's public disclosures. According to Check-Cap, these statements are unfounded and misleading. The company argues that Taves, being a seasoned financial executive, should understand the implications of publicly disseminating inaccuracies that could harm a company's reputation.

Legal and Ethical Ramifications

Check-Cap has asserted that Taves' actions could represent a violation of Section 9(a)(2) of the U.S. Securities Exchange Act of 1934. The Company firmly demands an immediate retraction of the misleading statements, a cessation of any further communications that could damage its reputation, and a public apology from Taves and MediPharm Labs.

Check-Cap's Commitment to Integrity

In the face of these attacks, Check-Cap emphasizes their commitment to operating with integrity and transparency. The Company has built its reputation on the promise of innovative medical diagnostics, particularly with its pioneering C-Scan technology, which is aimed at revolutionizing colorectal cancer screening.

About Check-Cap Ltd.

Check-Cap (NASDAQ: CHEK) is a clinical-stage company specializing in medical diagnostics. Their innovative product, C-Scan, is designed to detect colorectal polyps and aims to provide a non-invasive solution for early intervention and cancer prevention. Though currently not available in the United States, C-Scan holds promise for future cancer screening advancements.

Frequently Asked Questions

What prompted Check-Cap's public condemnation of Chris Taves?

Check-Cap publicly condemned Chris Taves for making misleading and defamatory statements during a sensitive time, claiming he aimed to harm the company's reputation.

How does Check-Cap describe the timing of Taves' statements?

Check-Cap criticized the timing of the statements, noting they were made shortly before Shabbat to hinder their ability to respond effectively, which they deemed unethical.

What specific accusations were made against Check-Cap?

Taves accused Check-Cap of deficiencies in public disclosures, but the company insists these claims lack factual basis and are misleading.

What legal actions might Check-Cap pursue against MediPharm Labs?

Check-Cap may consider legal actions if the defamatory statements are not retracted, as they believe Taves' actions violate securities regulations.

What is the C-Scan technology developed by Check-Cap?

C-Scan is a pioneering device aimed at non-invasively screening for colorectal cancer by detecting polyps before they develop into cancer, contributing to early intervention strategies.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

My books and writings are centered on simplifying difficult financial ideas into doable, understandable guidance. Whether it's retirement planning, investing, or budgeting, I want to arm readers with the information they need to make wise financial choices and realize their financial objectives.

Apart from writing, I also frequently post to financial blogs and organize webinars and workshops targeted at enlightening participants about personal finance. Always, my strategy is to offer concise, doable advice that can truly improve people's lives.

Away from work, I like to read, travel, and sample new foods. My goal is to infuse everything I do with the balance that I think is essential to both financial and personal well-being. By my profession, I want to encourage and enable people to confidently and clearly take charge of their financial futures.

Contact Logan Wright privately here. Or send an email with ATTN: Logan Wright as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.