Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 174

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 174
---
. On February 27, 2024, Weird Science and Wittekind sent the Company’s Board of Directors a supplemental letter
that expanded their demand for corrective actions to twenty-six issues. In response to these demand letters, the Board of Directors initially
formed a Special Committee (“Special Committee”) of independent directors on February 29, 2024. The Special Committee retained
Stradling Yocca Carlson & Rauth LLP as its counsel to investigate the issues identified in the demand letters. The Special Committee’s
investigation is ongoing.

On January 23, 2024, Weird Science and Wittekind filed a shareholder derivative action in the United States
District Court for the Central District of California against certain officers, directors, and investors of the Company, as well as other
defendants, in connection with, inter alia, Weird Science and Wittekind’s demand for corrective action. Plaintiffs filed
an amended complaint on June 21, 2024. The First Amended Verified Stockholder Derivative Complaint (“Derivative Complaint”)
alleges, among other claims, violations of Section 13(d) and 14(a) and Rules 10b-5(a), 10b-5(c) and 14a-9 of the Exchange Act of 1934.
The Derivative Complaint also includes claims of breach of fiduciary duty, corporate waste, unjust enrichment, and contribution/indemnification.
Weird Science and Wittekind seek unspecified compensatory, exemplary, and punitive damages and certain injunctive relief. The Derivative
Complaint names the Company as a nominal defendant. On July 19, 2024, certain of the director defendants, who had agreed to waive service
of the summons and Derivative Complaint, filed a motion to dismiss the Derivative Complaint on a variety of procedural and substantive
grounds. A hearing on the motion dismiss was held on October 3, 2024 and the court subsequently took the motion under submission. The
director defendants deny the allegations in the Derivative Complaint and intend to vigorously defend against the claims asserted therein.

On June 21, 2024, the Company
filed suit against Weird Science, Wittekind, and certain trusts in connection with the February 16, 2018 merger involving the Company
and two companies closely associated with Gumrukcu. In the complaint, the Company alleges that Gumrukcu and others deliberately and fraudulently
concealed a murder-for-hire scheme