Lisata Therapeutics files lawsuit alleging breach of agreement and pursues termination fee amid strategic review.
Lisata Therapeutics Inc (NASDAQ:LSTA, FRA:8NE) filed a lawsuit in the Delaware Court of Chancery against Kuva Labs and Kuva Acquisition Corp, alleging breach of their March 6, 2026 merger agreement. The company seeks damages for stockholders and a $2 million termination fee owed under the deal terms.
The clinical-stage pharmaceutical firm, focused on advanced solid tumor therapies, also announced a 72% workforce reduction to preserve cash during its strategic review. Lisata’s board is evaluating alternatives, including potential acquisitions, mergers, or asset sales, to enhance stockholder value.
Lisata stated it will provide updates once a definitive course of action is approved. Some laid-off employees may continue as external consultants to support ongoing operations.