Amended Complaint Alleges 29.6 Million Failed to Deliver Shares and Single Day Trading Volume of 15.3 Times Shares Outstanding, Company Seeks Treble Damages Under Federal RICO Statute
WILMINGTON, Del. and SACRAMENTO, Calif., Aug. 4, 2026 /PRNewswire/ -- Lunai Bioworks, Inc. (NASDAQ:LNAI), an AI driven precision medicine and biodefense company, today announced the filing of its First Amended Complaint in the United States District Court for the District of Delaware naming ten defendants, including three FINRA registered broker dealers, in connection with an alleged coordinated naked short selling scheme that the Company says generated failures to deliver on more than 81% of its outstanding shares. The Complaint makes clear that Lunai intends to add defendants who participated in the scheme upon confirming their identities through active continuing discovery and comprehensive mining of trading data and seeks a wider timeline of actively.
According to the Complaint, the named defendants and others sold short Lunai shares without borrowing or arranging to borrow the underlying securities as required under the federal law known as Regulation SHO, resulting in what the Complaint asserts are widespread failures to deliver, to enable what would otherwise be lawful short selling, during the period from November 2025 through May 2026. The Complaint alleges, using March 17, 2026, as an example, that 554,032,865 shares of LNAI traded in a single session, representing 15.3 times the Company's then total number of issued shares, on a date on which independent market data confirmed there were zero LNAI shares available to borrow in the institutional lending market, with the annualized borrow rate reaching 621.45%, up from 49.5% four days earlier. Previously, on the first day of the scheme to defraud as presently alleged, on November 5, 2025, the volume in that trading session reached 7.25 times the total number of the Company's then issued shares.