Company: LNAI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001731122-25-000765
Chunk: 179

Company: Lunai Bioworks Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 4
Chunk 179
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 motion to dismiss the Securities Class Action Litigation. On April 29, 2025, the court
stayed the Midler Matter for ninety (90) days. The parties’ deadline to file a joint status report in the Midler action is July
28, 2025. The defendants have not yet responded to the complaint. The Company intends to contest this matter but expresses no opinion
as to the likelihood of a favorable outcome. 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.

37

On October
21, 2022, the Company filed a Complaint in the Superior Court of the State of California for the County of Los Angeles against Serhat
Gümrükcü, William Anderson Wittekind (“Wittekind”), G Tech Bio, SG & AW Holdings, LLC, and SRI (collectively,
the “Defendants”). The Complaint alleges that the Defendants engaged in a “concerted, deliberate scheme to alter, falsify,
and misrepresent to the Company the results of multiple studies supporting its Hepatitis B and SARS-CoV-2/influenza pipelines.”
Specifically, “Defendants manipulated negative results to reflect positive outcomes from various studies, and even fabricated studies
out of whole cloth.” As a result of the Defendants’ conduct, the Company claims that it “paid approximately $25 million
to Defendants and third-parties that it would not otherwise have paid.” On April 21, 2023, defendants Wittekind, G Tech, SG &
AW Holdings, LLC, and SRI filed a demurrer with respect to some, but not all, of the Company’s claims, as well as a motion to strike.
On September 6, 2023, the court denied in part and granted in part the pending motions.

On December
4, 2023, the Defendants answered the Company’s First Amended Complaint and G Tech and SRI filed a Cross-Complaint. In the Cross-Complaint,
G Tech and SRI seek declaratory and injunctive relief related to certain agreements between G Tech, SRI, and the Company, including, inter
alia, a declaration that the Framework Agreement, effective as of November 15, 2019, the Statement of Work & License Agreement,
effective as of January 31, 2020, and the Statement of Work and License Agreement for Influenza and