Prime Medicine, Inc. 10-Q

Item 1. Legal Proceedings We are currently engaged in arbitration proceedings with Myeloid Therapeutics, Inc. (“Myeloid”) regarding the former research collaboration, option and license agreement (the “Agreement”) between the parties, under which we collaborated with Myeloid on the research and development of LINE-1 retrotransposon technology. We terminated the Agreement effective on September 7, 2023. On September 21, 2023, Myeloid filed an arbitration claim with the American Arbitration Association alleging that we breached our obligations under the Agreement by failing to pay a $17.5 million milestone payment and seeking, among other things, damages in the amount of $17.5 million. On October 10, 2023, we filed an answer, stating that the milestone payment is not due because Myeloid failed to meet the requirements of the milestone and that Myeloid breached the Agreement, and seeking, among other things, a finding that Myeloid is not entitled to the milestone payment. In addition, on October 16, 2023, we filed an arbitration claim with the American Arbitration Association alleging that Myeloid breached numerous obligations under the Agreement and seeking, among other things, a declaration that Myeloid breached the Agreement, rescission of the Agreement and damages in the amount of $43.5 million.