Medigus Ltd.: Recovery of Investment Losses

Have you suffered losses investing in Medigus Ltd. at the recommendation of your financial advisor? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA lawsuit against your brokerage firm.

What is Medigus Ltd.?

Based in Israel, Medigus Ltd. (Nasdaq: MDGS) is a technology company that is focused on innovative growth partnerships, mainly in advanced medical solutions, digital commerce, and electric vehicle markets.

Medigus’ affiliations in the medical solutions arena consist of ownership in ScoutCam (OTCQB: SCTC) Inc., and Polyzion Ltd. In the electric vehicle market, Charging Robotics Ltd. and Revoltz are part of the Company’s portfolio of technology solution providers.

As of April 9, 2024, according to an article by Globe Newswire, Medigus Ltd. announced a corporate rebranding “to reflect current focus in innovation technologies.” The rebranding includes a new name, Xylo Technologies Ltd., and an update to the Company’s corporate logo, as well as a new website.

Medigus Rebranding to Xylo Technologies (XYLO)

In addition, the Company’s Nasdaq trading symbols will change to XYLO. The Company will begin trading on the Nasdaq Capital Market (“Nasdaq”) under its new name “Xylo Technologies Ltd.” and new trading symbol “XYLO” upon the opening of the market on April 18, 2024.

As of September 1, 2024, according to Market Watch shares of Medigus/Xylo Technologies, Ltd. ADR are down -63.27% over the last 12 months.

February 2021, Medigus offered shares of its common stock for sale to investors.  The offering was reportedly underwritten by Aegis Capital Corp. As of February 28, 2024, the average post offering return was –93.2%. The company’s common stock was traded on the NASDAQ, under the symbol “MDGS.”

Risks Associated with Small Stock Offerings 

There are numerous risks involved in investing in small stock offerings, including the following, among others:

Liquidity Concerns: These stocks may have low trading volumes, making it difficult to buy or sell shares at desired prices.

Lack of Information: Many small companies may not provide comprehensive financial disclosures or have limited operating histories.

Market Volatility: Small stocks can be more volatile than larger, established companies, leading to significant price fluctuations.

Medigus Ltd: Suitable Investment for you?

Broker due diligence is a process undertaken by brokerage firms to ensure they are recommending and selling investment products appropriate for their clients. This process protects the interests of the brokerage firm and its clients by ensuring that the investments offered are suitable for the client’s investment objectives, risk tolerance, and financial situation.

If a broker or brokerage firm makes an unsuitable investment recommendation or fails to disclose the associated risks adequately, they may be found liable for investment losses in a FINRA arbitration claim. Fortunately, FINRA provides an arbitration forum for investors to resolve such disputes.

Class Action vs. Individual FINRA Arbitration Lawsuit

You may wonder whether a large class action lawsuit is a better litigation option than an individual FINRA arbitration case.  The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option.  Class actions as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.

Free Consultation

If you have suffered investment losses in Medigus Ltd., you may have recovery options. Please call the securities attorneys at The White Law Group for a free consultation at 1-888-637-5510.

About The White Law Group 

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. The firm represents investors across the country in claims against their brokerage firms.