Asset-Poor Enochian Bio Settles Investor Suit for $2.5 Million

Enochian Biosciences Inc. has agreed to pay investors $2.5 million to settle claims that the drug developer failed to disclose its co-founder’s alleged involvement in a murder, according to a federal court filing.

The deal is fair, reasonable, and adequate in light of Enochian’s “precarious” financial position, which dropped to about $220,000 in cash and cash equivalents in November, the investors told the US District Court for the Central District of California on Monday. “In short, Enochian’s financial condition and the real prospect of a near-term bankruptcy materially heightened the complexity and risk of further litigation,” the investors said.

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