Lisata Therapeutics Sues Kuva Labs After Failed Merger

Lisata Therapeutics Inc filed a lawsuit in the Delaware Court of Chancery against Kuva Labs and its subsidiary, Kuva Acquisition Corp, following the termination of a merger agreement established on March 6, 2026. The pharmaceutical company alleges that Kuva breached the agreement and is seeking damages for its stockholders as well as a $2 million termination fee.

In response to the failed merger, Lisata reduced its full-time workforce by approximately 72 percent. These cuts included the roles of chief medical officer and executive vice president of research and development. The company implemented these measures to preserve cash while conducting a strategic review of alternatives, which may include potential acquisitions or liquidation.

Despite the legal dispute and workforce reductions, Lisata continues the development of certepetide, an investigational cyclic peptide for solid tumors, utilizing its CendR Platform technology.