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LOS ANGELES, Aug. 30, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises SeaStar Medical Holding Corporation ("SeaStar" or the "Company") (NASDAQ: ICU) investors of a class action representing investors that bought securities between October 31, 2022 and March 26, 2024, inclusive (the "Class Period"). SeaStar investors have until September 6, 2024 to file a lead plaintiff motion.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
The complaint claims that the Company and its executives broke federal securities laws by making false or misleading statements and failing to disclose the following: (i) SeaStar and/or Legacy SeaStar had inadequate compliance controls and procedures for the HDE Application; (ii) as a result, there were problems with the HDE Application, the FDA was unlikely to approve it as it was, and the SCD’s regulatory prospects were exaggerated; (iii) the Company downplayed the real extent of issues with its financial controls and procedures while overstating efforts to fix them; (iv) consequently, SeaStar failed to correctly account for certain outstanding warrants and the Prepaid Forward Agreement; (v) as a result, SeaStar might need to restate one or more of its past financial statements; (vi) therefore, SeaStar’s business and financial prospects after the Merger were exaggerated; and (vii) this made the Company’s public statements misleading at all relevant times.
On March 27, 2024, SeaStar announced it will restate its financial statements for the fiscal year ending December 31, 2022, and for interim periods ending March 31, 2023, June 30, 2023, and September 30, 2023. The Company said the restatement will affect how certain outstanding warrants and the prepaid forward purchase arrangement, terminated in June 2023, are accounted for. SeaStar's CEO explained that the restatement would not significantly affect the Company's operations or cash position, but was related to non-cash accounting items. The CEO also noted that the decision to use a Special Purpose Acquisition Company (SPAC) to go public in late 2022, due to challenging market conditions, involved complex financial instruments. It was later determined that these instruments required different accounting treatment than previously judged, leading to the need for a restatement.
Following this announcement, SeaStar’s stock price dropped by $0.04 per share, or 5.41%, closing at $0.70 per share on March 27, 2024.
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