Lunai Bioworks (NASDAQ: LNAI) is the plaintiff in a federal securities fraud lawsuit filed in Delaware by national law firms Dickinson Wright and Fox Rothschild, alleging that unidentified “naked” short sellers engaged in a coordinated scheme to manipulate trading in the company’s common stock. The complaint alleges repeated violations of SEC Regulation SHO, including failures to deliver shares reaching as high as 234.6 times the maximum baseline daily rate and periods in which failures to deliver allegedly represented 81.6% of the company’s total outstanding shares.
According to the complaint, certain trading activity allegedly exceeded Lunai’s available share count, including more than 554 million shares traded on March 17, 2026, representing 15.3 times the company’s outstanding shares, and more than 100 million shares traded on May 4, 2026. The lawsuit seeks compensatory and special damages, injunctive relief and recovery of legal costs, while counsel said they intend to pursue expedited discovery to identify the unnamed defendants and seek emergency relief aimed at halting any ongoing manipulative trading.
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About Lunai Bioworks, Inc.
Lunai Bioworks, Inc. is a Delaware corporation headquartered in Sacramento, California. Lunai is an AI-driven platform for precision medicine that identifies targets for new therapeutics and biodefense countermeasures. The company has developed a cancer immunotherapy for solid tumors and proprietary, patented technologies that transform complex biomedical data into predictive insights. Lunai’s platforms include Augusta, an AI-powered precision neurology platform, and a portfolio focused on central nervous system disorders. The company also pursues federal government contracts in support of national security and biodefense applications through its AI platform.
About Fox Rothschild LLP
Fox Rothschild LLP is a law firm with approximately 1000 attorneys in 30 offices across major markets in the United States. Fox represents public and private companies, financial institutions, and individual clients in complex commercial litigation, securities law, intellectual property, corporate transactional matters, and related practice areas. Fox’s Securities Litigation group has extensive experience representing issuers in federal court and before the SEC, as well as pursuing securities fraud claims against market manipulators and wrongdoers.
About Dickinson Wright PLLC
Dickinson Wright is a general practice business law firm with more than 500 attorneys among more than 40 practice areas and 16 industry groups. The firm has 23 offices in the U.S. and Canada, including Arizona, California, Colorado, Florida, Illinois, Kentucky, Michigan, Nevada, Ohio, Tennessee, Texas, Washington, and Washington, D.C. The firm’s Canadian offices are located in Toronto and Windsor. Dickinson Wright has a strong securities and capital markets practice, with particular expertise in securities fraud litigation, enforcement matters, and complex commercial disputes. The firm’s attorneys regularly represent public companies, underwriters, and investors in high-stakes securities litigation. The firm’s Government Investigations and Securities Enforcement Practice regularly assists clients across all industries in formal and informal government investigations, enforcement proceedings, administrative actions and litigation by the SEC, PCAOB, FINRA, OTC Markets, DOJ (and US Attorney’s Offices), securities exchanges, state regulators, and Congressional committees.
For more information:
Co-Lead Counsel Contact: Jacob S. Frenkel, Chair, Government Investigations and Securities Enforcement Practice, 202-466-5953, [email protected]
Co-Lead Counsel Contact: Sidney S. Liebesman, Senior Litigation Partner, Wilmington, Delaware, 302-622-4237, [email protected]
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