Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Enochian Biosciences, Inc. (“Enochian” or the “Company”) (NASDAQ: ENOB) securities between January 17, 2018 and June 27, 2022, inclusive (the “Class Period”), including common stock issued by Enochian in a private placement offering on or about February 16, 2018. Enochian investors have until September 26, 2022 to file a lead plaintiff motion.
Investors suffering losses on their Enochian investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
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.
If you purchased Enochian securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20220729005074/en/
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
