Kirby McInerney LLP Announces the Filing of a Securities Class Action on Behalf of Enochian Biosciences, Inc. (ENOB) Investors
NEW YORK, July 29, 2022 (GLOBE NEWSWIRE) -- 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 January 17, 2018 through June 27, 2022, both dates inclusive (the “Class Period”), also including common stock issued by Enochian in a private placement offering on or about February 16, 2018. 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.” 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.
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.
If you purchased or otherwise acquired Enochian securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP by email at [email protected], or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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