Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 169

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 169
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The
Company maintains employment agreements with certain senior staff in the ordinary course of business.

Contingencies

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”) 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, and the
parties have come to an agreement in principle to settle the class action.

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
Gümrükcü and certain of the Company’s current and former directors as defendants. The actions also name the Company
as a nominal defendant. The actions allege violations of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934 and also set
out claims for breach of fid