Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 85

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 85
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 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 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,