Seastar Medical Holding Corp. (NASDAQ: ICU) Securities Fraud Class Action

LEAD PLAINTIFF DEADLINE IS SEPTEMBER 6, 2024.

If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.

Case Background:
On May 9, 2023, SeaStar disclosed that it had received a letter from the Center for Biologics Evaluation and Research of the FDA, rejecting the company’s Humanitarian Device Exemption (“HDE”) application for its pediatric Selective Cytopheretic Device (“SCD”), because “the application [wa]s not approvable in its current form[.]” SeaStar also stated that it had engaged in “a series of [purported] collaborative meetings and correspondence over the past 10 months” with the FDA, had made repeated responses “to the Agency’s recommendations,” and that there were “current deficiencies cited by the Agency in their letter[.]”

On this news, SeaStar’s stock price fell $0.77, or 39.7%, to close at $1.17 per share on May 10, 2023.

Then, on March 27, 2024, SeaStar announced that it had “determined that certain complex financial instruments required accounting treatment that differed from [its] previous judgment,” and that, due to the reporting of non-cash accounting items, SeaStar would need to restate financial statements for the fiscal year 2022 and the first three quarters of fiscal year 2023.

On this news, SeaStar’s stock price fell $0.04, or 4.8%, to close at $0.71 per share on March 27, 2024. 

The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors 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, Defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

What is a Lead Plaintiff?

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case.  Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.