Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001731122-25-000258
Chunk: 119

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 8
Chunk 119
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 the Company, names Serhat Gümrükcü
and certain of the Company’s current and former directors as defendants. The action also names the Company as a nominal defendant.
The action sets out claims for breaches of fiduciary duty, contribution and indemnification, aiding and abetting, and gross mismanagement.
Plaintiff does not quantify any alleged injury, but seeks damages, disgorgement, restitution, and other costs and expenses. On January
20, 2023, the Court stayed the Midler matter pending resolution of the defendants’ anticipated motion to dismiss in the Securities
Class Action Litigation. On June 28, 2024, the United States District Court for the Central District of California denied defendants’
motion to dismiss the Securities Class Action Litigation. On October 28, 2024, the court in the Midler matter stayed the case for ninety
(90) days. On January 24, 2025, the court in the Midler matter stayed the case for an additional ninety (90) days. The parties’
deadline to file a joint status report in the Midler matter is April 28, 2025. The defendants have not yet responded to the complaint.
The Company intends to contest this matter but expresses no opinion as to the likelihood of a favorable outcome. Management is unable
to determine the likelihood of a loss, including a possible range of losses, if any, arising from this matter as of the reporting date.

On October
21, 2022, the Company filed a Complaint in the Superior Court of the State of California for the County of Los Angeles against Serhat
Gümrükcü, William Anderson Wittekind (“Wittekind”), G Tech Bio, SG & AW Holdings, LLC, and SRI (collectively,
the “Defendants”). The Complaint alleges that the Defendants engaged in a “concerted, deliberate scheme to alter, falsify,
and misrepresent to the Company the results of multiple studies supporting its Hepatitis B and SARS-CoV-2/influenza pipelines.”
Specifically, “Defendants manipulated negative results to reflect positive outcomes from various studies, and even fabricated studies
out of whole cloth.” As a result of the Defendants’ conduct, the Company claims that it “paid approximately $25 million
to Defendants and third-parties that it would not otherwise have paid.” On April 21, 2023, defendants Wittekind, G Tech, SG &
AW Holdings, LLC, and S