Company: LNAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001731122-25-001544
Chunk: 24

Company: Lunai Bioworks Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 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 that, subject to final approval by the United States District Court for the Central District of California,
provides for resolution of the Securities Class Action Litigation. The Court granted the lead plaintiff’s motion for preliminary
approval of the settlement on August 18, 2025.

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”). The Koenig 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
Koenig Matter alleges violations of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934, and also sets out claims for breach
of fiduciary duty, contribution and indemnification, aiding and abetting, and gross mismanagement. Plaintiff does not quantify any alleged
injury, but seeks 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 June 28, 2024, the United States District Court for the Central District of California denied
defendants’ motion to dismiss the Securities Class Action Litigation. The parties in the Koenig Matter, the Solak Matter (defined
below), and the Midler Matter (defined below) have entered into a stipulation of settlement that, subject to final approval by the United
States District Court for the Central District of California, provides for resolution of the Koenig Matter, Solak Matter, and Midler Matter
(the “Koenig-Solak-Midler Settlement”). On November 3, 2025, plaintiff in the Koenig Matter filed a motion for preliminary
approval of the Koenig-Solak-M