Overview

A class action lawsuit has been filed against SeaStar Medical Holding Corporation (“SeaStar” or the “Company”) (NASDAQ: ICU) and certain of the Company’s former and current senior executive officers alleging violations of the federal securities laws. The SeaStar class action lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired SeaStar securities between October 31, 2022, and March 26, 2024, both dates inclusive (the “Class Period”). Investors have until September 3, 2024, to seek appointment as lead plaintiff of the SeaStar class action lawsuit.

SeaStar is a commercial-stage medical technology company focused on developing extracorporeal therapies to reduce the consequences of hyperinflammation on vital organs.

SeaStar initially operated as a special purpose acquisition company (“SPAC”) under the name LMF Acquisition Opportunities, Inc. (“LMAO”). On April 22, 2022, the Company, then still operating as a SPAC, and SeaStar Medical, Inc. (“Legacy SeaStar”), a medical technology company developing extracorporeal therapies to reduce the consequences of excessive inflammation on vital organs, jointly announced that they had entered into a merger agreement (the “Merger Agreement”). As contemplated under the Merger Agreement, the combined company would be known as “SeaStar Medical Holding Corporation” and would operate under the same management team as Legacy SeaStar, with all Legacy SeaStar shares owned by Legacy SeaStar’s existing equity holders to be converted into Class A Common Stock of the combined company (the “Merger”).

The Company and Legacy SeaStar touted the overall prospects of the combined company following the Merger, asserting that Legacy SeaStar had an enterprise value of approximately $85 million, while highlighting Legacy SeaStar’s Selective Cytopheretic Device (“SCD”) for the treatment of hyperinflammation and the SCD’s regulatory and commercial prospects. For example, the companies announced that Legacy SeaStar intended to submit an application for its SCD for approval with the U.S. Food and Drug Administration (“FDA”) under the Humanitarian Device Exemption (“HDE”) to commence commercialization for the treatment of pediatric acute kidney injury (“AKI”). Moreover, the companies announced that the Merger had already been unanimously approved by both Legacy SeaStar and the Company’s Boards of Directors and that the holders of a majority of Legacy SeaStar’s voting power had likewise already approved the Merger, with the Merger subject to final approval by stockholders of the Company and other customary closing conditions.

The SeaStar class action lawsuit alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) SeaStar  and/or Legacy SeaStar had deficient compliance controls and procedures related to the HDE Application; (2) 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; (3) 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; (4) accordingly, SeaStar had failed to properly account for the classification of certain outstanding warrants and the Prepaid Forward Agreement; (5) as a result, SeaStar was likely to restate one or more of its previously issued financial statements; (6) accordingly, SeaStar’s post-Merger business and financial prospects were overstated; and (7) as a result, the Company’s public statements were materially false and misleading at all relevant times.

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If you purchased or otherwise acquired SeaStar securities between October 31, 2022, and March 26, 2024, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at [email protected]. 

The deadline to apply to the Court to serve as a lead plaintiff in the SeaStar lawsuit is September 3, 2024.