Bi-Cure Laser Maker Reaches $750,000 Settlement in Lawsuit
Translated & summarized from Calcalist by baba
Erika Carmel-Tech, maker of Bi-Cure Laser devices, has agreed to a NIS 2.9 million settlement in a lawsuit involving its controlling shareholder, Michael Shluser. The settlement, pending court approval, includes no admission of guilt and will be paid by the company's insurer. The lawsuit alleged Shluser acted against the company's interests, leading to financial damages and governance issues. Erika Carmel-Tech has seen its market value plummet by 95% since its 2021 IPO and has faced regulatory actions regarding financial reporting and product certifications.
The story in 5 lines · by baba
- Erika Carmel-Tech agreed to a NIS 2.9 million settlement in a lawsuit involving its controlling shareholder.
- The settlement includes no admission of liability and is pending court approval.
- The lawsuit alleged controlling shareholder Michael Shluser acted against the company's interests.
- Erika Carmel-Tech's market value has dropped 95% since its 2021 IPO.
- The company faced regulatory actions for financial reporting and product certification issues.
Erika Carmel-Tech, the developer and marketer of Bi-Cure Laser pain treatment devices, has reached a settlement in legal proceedings against it and its controlling shareholder, Michael Shluser. Under the agreement, the company's directors and officers insurance will pay Erika Carmel-Tech NIS 2.9 million (approximately $750,000), of which NIS 900,000 (approximately $235,000) plus VAT will cover legal fees and expenses. The settlement is subject to court approval and includes no admission of liability or wrongdoing.
The lawsuit, which included a derivative claim request filed by lawyers Doron Weisbrod and Ziv Ironi, alleged that Shluser acted against the company's best interests. Claims included engaging with Shluser's private company, Eigen Beauty, which allegedly caused financial damage to Erika Carmel-Tech, as well as failures in overseeing UK operations, concealing regulatory approval information, and harming corporate governance. These allegations were part of the court filing and not established facts.
Erika Carmel-Tech, which went public on the Tel Aviv Stock Exchange in August 2021 at a valuation of approximately NIS 512 million, raising NIS 108 million, now trades at a valuation of only NIS 24 million, a 95% drop. The company has also faced scrutiny from the Israel Securities Authority regarding its financial reports for 2021-2022, requiring corrections for revenue recognition and provisions for bad debts related to its UK operations. In 2024, the Authority initiated administrative enforcement against the company and Shluser for failing to disclose the lack of CE certifications for some products marketed in the EU and for misleading reports. Additionally, the company was fined approximately NIS 92,000 for failing to meet external director requirements.
Erika Carmel-Tech reported a loss of NIS 7.9 million in the first half of 2026, compared to a loss of NIS 1.9 million in the same period last year.