Indicted Biotech Startup Founders Hit With Suit From Insurer

A tangle of claims against the co-founders of a now-defunct medical testing biotech startup—including federal criminal charges and an extradition request—weren’t covered by policies issued by a Markel Group Inc. insurance unit, the carrier said in a lawsuit.

The fecal testing startup, uBiome Inc., was shuttered in 2019 when it filed for bankruptcy after an FBI raid related to possible health insurance fraud. Its co-founders, Jessica Richman and Zachary Apte, were indicted in 2021 for alleged securities and health insurance fraud conspiracies.

The directors and officers and excess liability insurance policies didn’t afford coverage because the co-founders knew about the ...