Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 90

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 90
---
kind 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 from the Company in order to induce the Company to enter into the merger agreement, which resulted
in the defendants receiving shares and compensation. The Company asserts claims for fraudulent concealment, equitable fraud, unjust enrichment,
and civil conspiracy and seeks, inter alia, equitable relief, including, but not limited to, return to the Company any shares received
in connection with the merger, and damages. On October 1, 2024, the defendants moved to dismiss the complaint.

Item 4. Mine Safety Disclosures.

Not applicable.

<div align='center'>PART II</div>

Item 5. Market for Registrant’s Common