Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-K/A
Source: 0001731122-25-000252
Chunk: 171

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-K/A
Chunk 171
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 the Securities Class
Action Litigation. The deadline for the parties to file a proposed schedule or to continue the stay or proceedings in the Midler matter
is October 23, 2024. 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.

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 LLC (“G Tech”), SG & AW Holdings,
LLC, and Seraph Research Institute (“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 September 7, 2023, the court entered a case management order setting the final status conference, trial, and other intervening
deadlines.

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