Enochian Biosciences Inc. (ENOB) Overstated its Commercial Prospects for the Company’s Product Pipeline
A shareholder filed a class action on behalf of all persons or entities that purchased or otherwise acquired Enochian Biosciences Inc. (NASDAQ: ENOB) securities between September 24, 2020 and May 31, 2022, for violations of the Securities Exchange Act of 1934. Enochian is a pre-clinical stage biotechnology company that purportedly researches and develops pharmaceutical and biological products for the human treatment of human immunodeficiency virus, hepatitis B virus, influenza and coronavirus infections, and cancer.
According to the complaint, Enochian and its top management have credited Dr. Serhat Gumrukcu, Enochian’s co-founder and largest shareholder, as a “genius” and the “inventor” of the technology and science behind the Company’s product pipeline. However, defendants failed to disclose to shareholders that Gumrukcu had no verifiable degrees beyond high school and therefore, the scientific and technological underpinnings of Enochian’s product pipeline purportedly invented by Gumrukcu were dubious at best. As such, defendants significantly overstated the commercial prospects for the Company’s product pipeline. Further, Gumrukcu had a criminal history, including fraud, of which Enochian’s senior leadership was aware.
On May 25, 2022, the U.S. Department of Justice announced that Gumrukcu had been arrested and charged in a murder-for-hire conspiracy. On this news, the price of Enochian’s stock fell almost 37%, to close at $3.70 per share on May 25, 2022. Then, on June 1, 2022, Hindenburg Research published a report on Enochian highlighting the murder-for-hire plot, as well as the other crimes committed by Gumrukcu. Specifically, Gumrukcu “was arrested based on accusations of falsely posing as a doctor” in Turkey in 2012, and “[i]n February 2017, Gumrukcu was arrested by authorities after the State of California accused him of a slew of white-collar crimes, including fraud, identify theft, and check kiting – a total of 14 felonies.” On this news, Enochian’s stock fell another 28.42%, to close at $3.765 per share on June 1, 2022.
Next Steps: If you acquired shares of Enochian Biosciences Inc. between September 24, 2020 and May 31, 2022, you have until September 26, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.