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

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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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, after
which 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