Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001731122-25-000258
Chunk: 147

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 2
Chunk 147
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 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. 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 of the court. On January 10, 2025, the parties in the Koenig matter filed a
joint status report requesting that all pending deadlines in the matter remain suspended. The parties’ deadline to file a joint
status report in the Koenig matter is April