Company: LNAI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001731122-25-000765
Chunk: 156

Company: Lunai Bioworks Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 156
---
 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 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 filed their motion for preliminary approval of the
settlement on December 9, 2024. On December 18, 2024, the Company filed a notice of non-opposition to the motion for preliminary approval
of the settlement. On January 7, 2025, the Court took the plaintiff’s motion for preliminary approval of the settlement under consideration
without oral argument.

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 (the “Koenig Matter”). On January 19, 2023, John Solak filed a substantially
similar shareholder derivative action in the United States District Court for the District of Delaware (the “Solak
Matter”). 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 Gümr