Check-Cap claims BMO’s Chris Taves Illegally Attacks Israeli NASDAQ-Listed Company During Wartime
Rhea-AI Summary
Positive
- Check-Cap is taking proactive steps to defend its reputation and shareholders' interests
- Company demonstrates strong corporate governance by publicly addressing potential market manipulation
Negative
- Potential negative impact on stock price due to alleged defamatory statements
- Risk of prolonged legal dispute with MediPharm Labs and BMO executive
- Company resources may be diverted to address these allegations
News Market Reaction
On the day this news was published, CHEK gained 4.75%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Check-Cap Ltd. Issues Strong Condemnation of MediPharm Labs Chairman Chris Taves for Fabricated Defamatory Statements Press Releases
Taves Times his Attack to Commence 23 Minutes before the Start of Shabbat to Delay the Company from Responding
ISFIYA, ISRAEL, June 04, 2025 (GLOBE NEWSWIRE) -- Check-Cap Ltd. (NASDAQ: CHEK) ("Check-Cap" or the "Company"), a clinical-stage medical diagnostics company incorporated in Israel, today publicly condemned MediPharm Labs Corp. (LABS) ("MediPharm Labs") and its Chairman, Chris Taves, Head of Asia for BMO Capital Markets, for disseminating derogatory, false, and misleading statements about Check-Cap during a profoundly sensitive and challenging time for Israeli Companies.
Check-Cap is deeply disturbed that Mr. Taves would leverage the implied authority of his position as a senior BMO Executive to exploit the wartime circumstances currently affecting Israel, in order to knowingly spread false information aimed at harming Check-Cap’s reputation, stock price, and business relationships. This conduct is not only unethical and unlawful - it is shameful.
Specifically, MediPharm Labs's May 23, 2025 press release quoted Mr. Taves making what Check Cap believes to be demonstrably false statements about Check-Cap. Even more egregious, Mr. Taves, a financial executive who surely knows better, publicly disseminated his accusation of there being deficiencies in our public disclosures, without any actual factual basis whatsoever.
Check-Cap believes that Mr. Taves is misusing his position of trust as a BMO Capital Markets Executive to intentionally issue these misleading statements during trading hours in order to manipulate and drive down Check-Cap’s stock price, violating Section 9(a)(2) of the U.S. Securities Exchange Act of 1934.
Check-Cap demands that MediPharm Labs and Mr. Taves immediately retract the defamatory press release, cease all related misleading communications, and publicly apologize for Mr. Taves disgraceful actions.
The fact that Mr. Taves and MediPharm Labs have chosen to launch such deplorable and unfounded attacks on an Israeli company minutes before the start of Shabbat at a time of war is reprehensible. Check-Cap will vigorously defend its reputation and its rights against these highly unethical attempts at aspersion, market manipulation and interference in a public transaction.
About Check-Cap
Check-Cap (NASDAQ: CHEK) is a clinical stage medical diagnostics company aiming to redefine colorectal cancer (CRC) screening through the introduction of C-Scan®, the first and only patient-friendly preparation-free screening test to detect polyps before they may transform into colorectal cancer and enable early intervention and cancer prevention. C-Scan is an investigational device and is not available for sale in the United States.
Legal Notice Regarding Forward-Looking Statements
This press release contains "forward-looking statements" about the Company's expectations, beliefs or intentions regarding, among other things, its product development efforts, business, financial condition, results of operations, strategies or prospects. Words such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," and similar expressions, as well as statements in future tense, often signify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and may not be accurate indications of when such performance or results will be achieved. Forward-looking statements are based on information that the Company has when those statements are made or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. For a discussion of these and other risks that could cause such differences and that may affect the realization of forward-looking statements, please refer to the "Forward-looking Statements" and "Risk Factors" in the Company's Annual Report on Form 20-F for the year endedDecember 31, 2023and other filings with the Securities and Exchange Commission (SEC). Investors and security holders are urged to read these documents free of charge on the SEC's web site at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
FAQ
What allegations has Check-Cap (CHEK) made against Chris Taves?
When did MediPharm Labs release the allegedly defamatory statements about Check-Cap?
What specific securities law does Check-Cap claim was violated?
What actions is Check-Cap demanding from MediPharm Labs and Chris Taves?
What is Check-Cap's main business?
