Company: LNAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001731122-25-001544
Chunk: 102

Company: Lunai Bioworks Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 102
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 Matter 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, restitution, and other costs and expenses. On January 20, 2023, the
Court stayed the Midler 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 July 31, 2025, the court stayed the Midler Matter for 120 days. On November 3, 2025,
plaintiff in the Koenig Matter filed a motion for preliminary approval of the Koenig-Solak-Midler Settlement in the United States District
Court for the Central District of California. The defendants have not yet responded to the complaint. 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.

35

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 (“Gumrukcu”), 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