Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000254
Chunk: 20

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 20
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 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 Gümrükcü and certain of the Company’s 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 fiduciary duty, contribution and indemnification, aiding and abetting,
and gross mismanagement. Plaintiffs do not quantify any alleged injury, but seek damages, disgorgement, restitution, and other costs and
expenses. On January 24, 2023, the United States District Court for the Central District of California stayed the Koenig matter pending
resolution of the defendants’ anticipated motion to dismiss in the Securities Class Action Litigation. On April 4, 2023, the United
States District Court for the District of Delaware stayed the Solak 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 23, 2024, the court in the Koenig matter
stayed the case pending further order