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LOS ANGELES, Sept. 07, 2022 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Enochian Biosciences, Inc. (“Enochian” or the “Company”) (NASDAQ: ENOB) investors that a class action filed on behalf of investors that purchased Enochian shares between January 17, 2018 and June 27, 2022, inclusive (the “Class Period”).
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On May 25, 2022, the U.S. Department of Justice announced that Serhat Gumrukcu, the co-founder and inventor of Enochian, had been arrested in a murder-for-hire conspiracy.
On this news, the Company’s shares fell $2.17, or 37%, to close at $3.70 per share on May 25, 2022, on unusually heavy trading volume.
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." The report also alleged that Gumrukcu is not a licensed doctor in any jurisdiction in the world, that he had pled guilty to felony charges in the midst of the Company’s merger, and that he “had siphoned tens of millions of dollars in shareholder cash from Enochian to his privately-owned entities.” Moreover, Hindenburg alleged that Enochian has been aware of the foregoing allegations.
On this news, the Company’s shares fell $1.495, or 28.4%, to close at $3.77 on June 1, 2022, on unusually heavy trading volume.
On June 27, 2022, The Wall Street Journal published an article about Gumrukcu’s participation in the murder-for-hire conspiracy, claiming that Gumrukcu owed Davis over $900,000 after Gumrukcu coaxed Davis into entering into a fraudulent oil deal with him. The article further alleged that FBI agents were suspicious that Gumrukcu “had fabricated his resume and held neither a medical degree nor a doctoral degree.”
On this news, the Company’s shares fell $0.73, or 21.9%, to close at $2.60 per share on June 27, 2022, on unusually heavy trading volume.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that co-founder and inventor Gumrukcu was engaged in a variety of frauds; (2) that Gumrukcu was not a licensed doctor anywhere in the world; (3) that, as a result of the foregoing, Gumrukcu’s purported contributions to the Company lacked a reasonable basis; (4) that, as a result of the foregoing, the Company had overstated its commercial prospects; (5) that Gumrukcu had improperly diverted approximately $20 million from Enochian to entities he owned; and (6) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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