Company: LNAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001731122-25-001544
Chunk: 25

Company: Lunai Bioworks Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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idler Settlement with the United States District Court for the Central District of California. The defendants
have not yet responded to the complaint.

    17

On January 19, 2023, John Solak
filed a shareholder derivative action in the United States District Court for the District of Delaware (the “Solak Matter”).
The Solak Matter, filed on behalf of the Company, names Serhat Gümrükcü and certain of the Company’s current and
former directors as defendants, and also names the Company as a nominal defendant. The Solak Matter alleges violations of Section 14(a)
of the Securities Exchange Act of 1934 and SEC Rule 14a-9 promulgated thereunder, and also sets out claims for breach of fiduciary duty
and contribution and indemnification. Plaintiff does not quantify any alleged injury, but seeks damages, disgorgement, restitution, and
other costs and expenses. On April 6, 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 November 3, 2025, plaintiff in the Koenig Matter filed a motion for preliminary approval of the Koenig-Solak-Midler Settlement in the
United States District Court for the Central District of California. The Solak Matter is stayed pending approval of the Koenig-Solak-Midler
Settlement. The defendants have not yet responded to the complaint. Management is unable to determine the likelihood of a loss, including
a possible range of losses, if any, arising from this matter as of the reporting date.

State Derivative Litigation.
On October 20, 2022, Susan Midler filed a shareholder derivative action in the Superior Court of California, Los Angeles County (the “Midler
Matter”). The Midler Matter, filed on behalf of the Company, names Serhat Gümrükcü and certain of the Company’s
current and former directors as defendants. The Midler Matter also names the Company as a nominal defendant. The Midler Matter sets out
claims for breaches of fiduciary duty, contribution and indemnification, aiding and abetting, and gross mismanagement. Plaintiff does
not quantify any alleged injury, but