Last Friday afternoon Citron Research was the first to warn that something was wrong with the press release from Medis Technology (NASDAQ:MDTL) that claimed a new deal with Microsoft as their first “commercial sale”. On that day, Medis stock added as much $200 million in market cap.
Whereas the company wanted the investing public to believe that after years of nonsense press releases, (which we will discuss in further reports) the company finally has gained commercial acceptance of a product which was developed 5 years ago and appears to be a dinosaur in today’s marketplace.
Quotes on Microsoft “news” from CEO Robert Lifton:
This most recent action by Medis Technology can be seen as deceptive and manipulative — and in direct violation of the Securities Act of 1934.
The term “manipulative, deceptive, or other fraudulent device or contrivance,” as used in Section 15(c)(1) of the Act, is hereby defined to include any untrue statement of a material fact and any omission to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading, which statement or omission is made with knowledge or reasonable grounds to believe that it is untrue or misleading.
This is not the first time the company has misled the investing public. In future reports on Medis Technology, Citron will uncover the long history of blatant misrepresentations and misleading statements that have been distributed to the investing public.