Lisata cuts 72% of workforce, terminates CMO amid Kuva Labs merger dispute

Lisata Therapeutics disclosed in an 8-K that its board approved a reduction in workforce by approximately 72%, effective immediately, on August 3, 2026.¹ The company said the decision was based on cost-reduction initiatives intended to reduce ongoing operating expenses and maximize shareholder value as it pursues strategic options.¹

Affected staff will receive separation benefits, including severance payments and temporary healthcare coverage assistance for certain employees.¹ Lisata estimated it will incur approximately $1.2 million in costs tied to the workforce reduction, related to severance pay and other termination benefits, expected through the quarter ending September 30, 2026.¹ The company cautioned that these cost estimates are subject to assumptions, risks and uncertainties, and it may incur additional material charges not currently contemplated.¹

In connection with the cuts, the employment of Dr. Kristen K. Buck, the company's Executive Vice President of R&D and Chief Medical Officer, was terminated effective August 3, 2026.¹ Under her amended employment agreement, her departure constitutes a termination without cause, entitling her to 12 months of base salary and target bonus compensation plus up to 12 months of COBRA premium payments, subject to executing a release.¹

Separately, the board approved a cash retention bonus of $200,000 to James Nisco, the company's Senior Vice President, Finance and Treasury and Chief Accounting Officer,¹ payable under specified conditions tied to continued employment through December 31, 2026.

The filing also disclosed that on July 31, 2026, Lisata sued Kuva Labs Inc. and its subsidiary Kuva Acquisition Corp. in Delaware Chancery Court over an alleged breach of their March 6, 2026 merger agreement.¹ The company said it is seeking damages for the benefits its stockholders expected from the transaction.¹