Enochian Biosciences, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired Enochian Biosciences, Inc. (“Enochian”) (NASDAQ: ENOB) securities from September 24, 2020 through May 31, 2022, both dates inclusive (the “Class Period”). Investors have until September 26, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Enochian is a biopharmaceutical company that focuses on identifying, developing, manufacturing, and commercializing gene-modified cell therapy
On May 25, 2022, the U.S. Department of Justice announced that Serhat Gumrukcu, the inventor and co-founder of Enochian, had been arrested and charged in a murder-for-hire conspiracy. On this news, the price of Enochian shares declined by $2.17 per share, or approximately 36.9%, from $5.87 per share to close at $3.70 on May 25, 2022.
On June 1, 2022, Hindenburg Research published a research report alleging, among other things, that the charge related to the murder of Gregory Davis, just days before Gumrukcu was to defend himself against felony fraud allegations related to a deal with Davis. According to the report, “[f]ederal prosecutors argued that the prospective merger deal that eventually resulted in Enochian going public served as a key motive for the murder.” On this news, the price of Enochian shares declined by $1.49 per share, or approximately 28.4%, from $5.26 per share to close at $3.77 on June 1, 2022.
On June 27, 2022, The Wall Street Journal published an article detailing Gumrukcu’s involvement in Davis’s murder, alleging that in an oil deal with Davis, Gumrukcu had written $600,000 worth of fraudulent checks and owed Davis more than $900,000 for late fees and penalties. Davis had threatened to expose Gumrukcu’s fraud, which also threatened an ongoing deal between Enochian and a drug developer that would yield “a fortune in future drug-licensing agreements.” The article also alleged that, during an investigation of Gumrukcu’s various schemes and fraudulent checks, an FBI agent began to suspect Gumrukcu of “claiming to be an American doctor who had a special cure for cancer and AIDS.” Enochian’s former chief executive also stated that he had begun to suspect that Gumrukcu “had fabricated his résumé and held neither a medical degree nor a doctoral degree.” On this news, the price of Enochian shares declined by $0.73 per share, or approximately 21.9%, from $3.33 per share to close at $2.60 on June 27, 2022.
On July 1, 2022, Enochian announced the results of its internal review of scientific data, disclosing that it had discovered that “former scientific advisor Serhat Gumrukcu altered two different sets of animal data generated by third-party research institutions.” Additionally, the Company is “evaluating its internal controls regarding the review and verification of external scientific data and will modify as appropriate.”