Company: LNAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001731122-25-001544
Chunk: 48

Company: Lunai Bioworks Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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 Central District
of California against the Company and certain of the Company’s current and former officers and directors. The complaints allege,
among other things, that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule
10b-5 thereunder, by making false and misleading statements and omissions of material fact in connection with the Company’s relationship
with Serhat Gümrükcü and its commercial prospects. The complaints seek unspecified damages, interest, fees, and costs.
On November 22, 2022, the Manici Action was voluntarily dismissed without prejudice. The Chow Action (also referred to as the “Securities
Class Action Litigation”) 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 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 that, subject to final approval by the United States District Court for the Central District of California,
provides for resolution of the Securities Class Action Litigation. The Court granted the lead plaintiff’s motion for preliminary
approval of the settlement on August 18, 2025.

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 (the “Koenig Matter”). The Koenig Matter, filed on behalf of the Company, names Serhat Gümrükcü
and certain of the Company’s current and former directors as defendants, and also names the Company as a nominal defendant. The
Koenig Matter alleges violations of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934, and also sets out claims for breach
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 24, 2023, the United States District Court
for the Central District of California stayed the Koenig Matter pending resolution of