Court Halts 54gene Asset Sale Amid Founder’s Accusations Against Investors
A Nigerian Federal High Court in Lagos has issued an injunction preventing the sale of assets belonging to 54gene, a healthtech startup. This action follows a petition filed by 54gene’s founder, Dr. Abasi Ene-Obong, who alleges that the company’s collapse was orchestrated by its major investors, Cathay AfricInvest and Adjuvant Capital. The legal intervention aims to prevent the dissolution of the company amidst these serious allegations.
Founder Alleges Investor Mismanagement
Dr. Ene-Obong’s petition, submitted in July 2025, accuses Cathay AfricInvest and Adjuvant Capital of deliberately dismantling 54gene. He claims the investors bypassed the board of directors, rejected a proposed $110 million rescue plan, and subsequently forced the Nigerian subsidiary into bankruptcy. Further, Ene-Obong alleges that the investors threatened to disseminate false allegations of fraud against him. A key point of contention is the alleged transfer of assets to the Nigerian subsidiary for sale without proper oversight, raising concerns about the handling of sensitive genomic data, a core component of 54gene’s operations. Ene-Obong also claims the investors, holding a combined 29.4% stake, artificially reduced 54gene’s valuation from $170 million to $50 million while demanding a return of four times their initial investment.
The court’s decision to block the asset sale highlights the severity of the accusations and the potential implications for the future of 54gene. This case underscores the complex dynamics between startups and investors in the African tech ecosystem and raises important questions about governance, ethical conduct, and the protection of sensitive data.
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