NEW YORK, July 09, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the District of Colorado on behalf of all persons and entities who purchased securities of SeaStar Medical Holding Corporation (“SeaStar” or the “Company”) (NASDAQ: ICU, ICUCW) between October 31, 2022 and March 26, 2024, inclusive (the “Class Period”). 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.
The Complaint alleges that 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.
The Complaint further 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.
Investors who purchased or otherwise acquired shares of SeaStar should contact the Firm prior to the September 3, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
