Company: LNAI
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001731122-25-000258
Chunk: 26

Company: Lunai Bioworks Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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 the defendants’
anticipated motion to dismiss in the Securities Class Action Litigation. On June 28, 2024,

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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. On January 10, 2025, the parties in the Koenig matter filed a
joint status report requesting that all pending deadlines in the matter remain suspended. The parties’ deadline to file a joint
status report in the Koenig matter is April 11, 2025. On October 28, 2024, the court in the Solak matter stayed the case for ninety (90)
days. On January 29, 2025, the court in the Solak matter stayed the case for an additional 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, 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 October 28, 2024, the court in the Midler matter
stayed the case for ninety (90) days. On January