SAN DIEGO, July 22, 2024 (GLOBE NEWSWIRE) — Robbins LLP reminds investors that a shareholder filed a class action on behalf of persons and entities that purchased or otherwise acquired SeaStar Medical Holding Corporation (NASDAQ: ICU, ICUCW) securities between October 31, 2022 and March 26, 2024. SeaStar was originally a special purpose acquisition company functioning under the name LMF Acquisition Opportunities, Inc. Legacy SeaStar was a medical technology company developing extracorporeal therapies to reduce the consequences of excessive inflammation on vital organs. On October 28, 2022, the companies merged.
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The Allegations: Robbins LLP is Investigating Allegations that SeaStar Medical Holding Corporation (ICU) Misled Investors Regarding its Business Prospects
The complaint alleges that during the class period defendants failed to disclose that: (i) SeaStar and/or Legacy SeaStar had deficient compliance controls and procedures related to the HDE Application; (ii) accordingly, there were deficiencies with the HDE Application, the FDA was unlikely to approve the HDE Application in its present form, and the SCD’s regulatory prospects were overstated; (iii) the Company had downplayed the true scope and severity of deficiencies in its financial controls and procedures, while overstating Defendants’ efforts to remediate the same; (iv) accordingly, SeaStar had failed to properly account for the classification of certain outstanding warrants and the Prepaid Forward Agreement; (v) as a result, SeaStar was likely to restate one or more of its previously issued financial statements; and (vi) accordingly, SeaStar’s post-merger business and financial prospects were overstated.
On May 9, 2023, SeaStar announced it had received a letter from the Center for Biologics Evaluation and Research of the FDA, rejecting the Company’s HDE application for its pediatric Selective Cytopheretic Device for the treatment of hyperinflammation. On this news, SeaStar’s stock price fell $0.77 per share, or almost 40% per share, to close at $1.17 per share on May 10, 2023.
Plaintiff alleges that on March 27, 2024, SeaStar announced it would restate its financial statements for the fiscal year ended December 31, 2022, as well as for the interim periods ended March 31, 2023, June 30, 2023, and September 30, 2023. On this news, the Company’s stock price fell again, to close at $0.71 per share on March 27, 2024.
What Now: You may be eligible to participate in the class action against SeaStar Medical Holding Corporation. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by September 6, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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