Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000254
Chunk: 51

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 51
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 reporting during the three months ended September 30, 2024, that have materially affected or are reasonably
likely to materially affect our internal controls.

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PART II — OTHER INFORMATION</div>

Item 1. Legal Proceedings.

Securities Class Action Litigation.On July 26,
2022 and July 28, 2022, securities class action complaints (the former, the “Chow Action” and the latter, the “Manici
Action”) and together, the “Securities Class Action Litigation”) were filed by purported stockholders of the Company
in the United States District Court for the Central District of California against the Company and certain of the Company’s current
and former officers and directors. The complaints allege, among other things, that the defendants violated Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934, as amended, and Rule 10b-5 thereunder, by making false and misleading statements and omissions of
material fact in connection with the Company’s relationship with Serhat Gümrükcü and its commercial prospects. The
complaints seek unspecified damages, interest, fees, and costs. On November 22, 2022, the Manici Action was voluntarily dismissed without
prejudice, but the Chow action remains pending. On October 22, 2023, the Court appointed a lead plaintiff in the Chow Action. The
lead plaintiff filed an amended complaint on December 15, 2023. The Company has filed a motion to dismiss the amended complaint on March
15, 2024. The Court denied the Company’s motion to dismiss on June 28, 2024. A mediation was held on September 17, 2024, after which
the parties signed a stipulation of settlement, dated November 8, 2024. The plaintiff’s deadline to file a motion for preliminary
approval of the settlement is December 9, 2024.

Federal Derivative Litigation. On September 22,
2022, Samuel E. Koenig filed a shareholder derivative action in the United States District Court for the Central District of California.
On January 19, 2023, John Solak filed a substantially similar shareholder derivative action in the United States District Court for the
District of Delaware. Both derivative actions recite similar underlying facts as those alleged in the Securities Class Action Litigation.
The actions, filed on behalf of the Company, name Serhat Gümrü