Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q/A
Source: 0001731122-25-000254
Chunk: 52

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q/A
Chunk 52
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kcü 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. The parties’ deadline to file a joint status report in the Koenig matter
is January 10, 2025. On October 28, 2024, the court in the Solak matter stayed the case for ninety (90) days. The defendants
have not yet responded to either complaint. The Company intends to contest these matters but expresses no opinion as to the likelihood
of favorable outcomes. 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.

State Derivative Litigation. On October 20,
2022, Susan Midler filed a shareholder derivative action in the Superior Court of California, Los Angeles County, reciting similar underlying
facts as those alleged in the Securities Class Action Litigation. The action, filed on behalf of the Company, names Serhat Gümrükcü
and certain of the Company’s current and former directors as defendants. The action also names the Company as a nominal defendant.
The action sets out claims for breaches of fiduciary duty, contribution and indemnification, aiding and abetting, and gross mismanagement.
Plaintiff does not quantify any alleged injury, but seeks damages, disgorgement