Lunai Bioworks Litigation Updates

Update – September 8, 2026

Dickinson Wright represents Lunai Bioworks, Inc. (Nasdaq: LNAI) in one of the most extensive and trading-detailed naked short-selling and market-manipulation cases ever filed. Jacob Frenkel, Chair of Dickinson Wright’s Securities Enforcement and Government Investigations Practice, serves as lead counsel, together with Delaware co-counsel Fox Rothschild LLP. Mr. Frenkel is a former SEC Enforcement attorney and a former federal prosecutor of securities fraud and public corruption cases — experience that has directly shaped the investigation and legal theories underlying this litigation.

On August 26, 2026, Dickinson Wright and Fox Rothschild filed a (redacted) Second Amended Complaint in the United States District Court for the District of Delaware, Lunai Bioworks, Inc. v. Lightspeed Financial Services Group LLC, et al., Civil Action No. 26-549-CFC. That Second Amended Complaint is now the operative pleading and reflects the most detailed statement of Lunai’s claims to date.

♦  Second Amended Complaint (PDF), filed August 26, 2026

From a Doe Complaint to Named Defendants

The case began on May 12, 2026, when Dickinson Wright and Fox Rothschild filed suit on behalf of Lunai against unidentified Doe defendants, alleging a coordinated naked short-selling scheme that violated federal securities laws, including Regulation SHO, and artificially depressed Lunai’s stock price notwithstanding a series of positive corporate developments.

Rather than wait through the ordinary course of discovery, Lunai’s counsel moved immediately for expedited third-party discovery. That effort succeeded: within roughly three months, using account-level trading, locate, and clearing records obtained directly from the brokers and clearing firms involved, counsel identified and began naming the individuals and entities behind the anonymous trading activity. The First Amended Complaint, filed August 3, 2026, named specific trading accounts for the first time. The Second Amended Complaint builds substantially on that foundation, naming more than 150 individual and entity defendants and alleging, among other things:

• Naked short selling and failures to deliver that, on certain days, allegedly exceeded the entirety of Lunai’s publicly available share supply;
• Coordinated trading across dozens of nominally unrelated brokerage accounts;
• Efforts to evade Regulation SHO’s locate and close-out requirements; and
• Trading activity that, according to the Complaint, neutralized the market impact of positive corporate news.

The Second Amended Complaint asserts claims for securities fraud (Section 10(b) and Rule 10b-5), market manipulation (Section 9(a)), civil RICO, common law fraud, tortious interference with contract, civil conspiracy, and fraudulent misrepresentation.

Motion to Dismiss Practice

Defendant Bisoke, LLC has moved to dismiss the claims against it. Lunai’s opposition — which addresses Bisoke’s arguments with specificity and explains why the Second Amended Complaint states a claim on every count — is available below.

♦  Lunai’s Opposition to Bisoke, LLC’s Motion to Dismiss (PDF), filed September 8, 2026

Looking Ahead

Dickinson Wright will continue to update this page as significant developments occur. For the complete docket and the most current filings, please consult the federal court’s PACER system.