ENOB.US
id: 114
Enochian Biosciences ($ENOB) $2.5M Investor Settlement
The settlement terms have been submitted to the court for approval.
$2,500,000
Cash SettlementC.D. California
Court8:22-cv-01374
Case number01/17/2018
Class period Start06/27/2022
Class period EndEnochian Biosciences has reached a settlement with $ENOB investors to resolve claims that it concealed its co-founder’s lack of proper credentials and criminal history.
Overview
Enochian Biosciences was accused of hiding that its co-founder had a history of fraud and falsified credentials. In May 2022, his arrest triggered a 37% drop in $ENOB, followed by another 28% decline after further revelations.
Timeline
- January 17, 2018 – Enochian Biosciences went public through a merger.
- May 25, 2022 – Co-founder Serhat Gumrukçu was arrested for a 2018 murder-for-hire plot, causing $ENOB to drop 37%.
- June 1, 2022 – A report revealed Gumrukçu’s history of fraud and falsified credentials, leading to a 28% decline in $ENOB.
- June 2022 – Investors filed a lawsuit, alleging that Enochian failed to disclose key risks tied to its leadership.
- December 2024 – Enochian agreed to settle for $2.5 million to resolve investor claims.
Background
Between 2018 and 2022, Enochian Biosciences presented itself as a cutting-edge biotech company developing cell and gene therapies. The company claimed that its co-founder and scientific inventor, Serhat Gumrukçu, was a highly credentialed medical researcher.
Enochian tied nearly all its value to intellectual property licensed from Gumrukçu, assigning it a valuation of over $127 million—roughly 88% of the company’s assets.
Executives promoted him publicly as a scientific genius, despite internal concerns raised as early as 2019. When Enochian’s former CEO and CFO questioned Gumrukçu’s background, they were allegedly terminated.
In May 2022, Gumrukçu was arrested for orchestrating a murder-for-hire plot tied to a past business dispute. On June 1, 2022, a Hindenburg Research report exposed his lack of credentials, history of fraud, and the company’s reliance on his work.
That same month, The Wall Street Journal revealed that Enochian executives had raised red flags years earlier, but they were ignored.
These revelations caused $ENOB to fall by 53%.
On July 26, 2022, investors filed a lawsuit, alleging that Enochian misled them about its leadership and core scientific claims.
What Can Investors Expect Now?
Enochian Biosciences has reached a settlement with $ENOB investors to resolve claims that it concealed its co-founder’s lack of proper credentials and criminal history.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Status
Stipulative Settlement
Alleged Offence
Mismanagement,
Misleading Statements,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.09
Filing date
07/26/2022
Plaintiffs
Albert Chow
Attorneys
Portnoy Law Firm; Pomerantz LLP
Defendants
Mark Dybul, Evelyn DAn, Luisa Puche, Jayne McNicol, Rene Sindlev, Carol L. Brosgart, Gregg Alton, James Sapirstein, Carl Sandler, Henrik Gronfeldt Sorensen
Judge
John W. Holcomb
Administrator
EPIQ
Attorney fee
$1,050,000
Class wide damages
$109,100,000
Trades matching type
FIFO
Frequently Asked Questions
Who is eligible for this settlement?
Do I have to sell securities to be eligible?
How long does the payout process take?
How much will my payment be?
What is 11th Estate?