Lisata Therapeutics Inc.

Lisata Therapeutics has filed a lawsuit against Kuva Labs and its subsidiary Kuva Acquisition Corp following the termination of their merger agreement. The clinical-stage pharmaceutical company alleges Kuva breached the agreement dated March 6, 2026, and is seeking damages for stockholders plus a $2 million termination fee. Lisata’s board is evaluating strategic alternatives including a potential acquisition, merger, reverse merger, asset sales, or liquidation. To preserve cash, the company reduced its workforce by approximately 72%, including the executive vice president of research and development and chief medical officer role.

Lisata Therapeutics sank 16% after its planned sale to Kuva Labs was terminated. The termination occurred because Kuva Labs was unable to obtain sufficient financing to fund its takeover offer, according to an 8-K filing on Friday. As a result, Kuva is obligated to pay Lisata a termination fee of $2 million under the merger agreement. Lisata had announced in January that it entered into a binding term sheet with privately held Kuva Labs for an acquisition through a tender offer priced at $4.00 per share in cash.