Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 63

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 63
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, in connection with, inter alia, Weird Science
and Wittekind’s demand for corrective action. Plaintiffs filed an amended complaint on June 21, 2024. The First Amended Verified
Stockholder Derivative Complaint (“Derivative Complaint”) alleges, among other claims, violations of Section 13(d) and 14(a)
and Rules 10b-5(a), 10b-5(c) and 14a-9 of the Exchange Act of 1934. The Derivative Complaint also includes claims of breach of fiduciary
duty, corporate waste, unjust enrichment, and contribution/indemnification. Weird Science and Wittekind seek unspecified compensatory,
exemplary, and punitive damages and certain injunctive relief. The Derivative Complaint names the Company as a nominal defendant. On July
19, 2024, certain of the director defendants, who had agreed to waive service of the summons and Derivative Complaint, filed a motion
to dismiss the Derivative Complaint on a variety of procedural and substantive grounds. A hearing on the motion dismiss was held on October
3, 2024 and the court subsequently took the motion under submission. On October 22, 2024, the plaintiffs filed a notice of certain subsequent
events that they allege relate to their pending motion to dismiss. On October 29, 2024, the court granted the director defendants’
motion to dismiss and dismissed the Derivative Complaint without prejudice, but also without leave to amend.

On November 27, 2024, Weird Science
and Wittekind filed a notice of appeal of the court’s decision granting the director defendants’ motion to dismiss. The appeal
remains pending.

On June 21, 2024, the Company
filed suit against Weird Science, Gumrukcu, Wittekind, and certain trusts in connection with the February 16, 2018 merger involving the
Company and two companies closely associated with Gumrukcu. In the complaint, the Company alleges that Gümrükcüand others
deliberately and fraudulently concealed a murder-for-hire scheme from the Company in order to induce the Company to enter into the merger
agreement, which resulted in the defendants receiving shares and compensation. The Company asserts claims for fraudulent concealment,
equitable fraud, unjust enrichment, and civil conspiracy and seeks, inter alia, equitable relief, including, but not limited to,
return to the Company any shares received in connection with