New York Biotech, Arch Unit Settle Insurance Coverage Dispute

Xylyx Bio Inc. and its insurer, an Arch Capital Group Ltd. unit, have agreed to settle the Brooklyn-based biotech’s suit seeking coverage for legal costs in underlying litigation over a skin care product line.

The US District Court for the Western District of Missouri dismissed the case with prejudice on Tuesday, after the parties filed a stipulation of voluntary dismissal.

• Xylyx sued Arch Insurance Co. in March, alleging the carrier owed coverage for costs incurred responding to subpoenas issued to the biotech and some of its executives in an underlying 2023 lawsuit brought in New York state court.
• The parties’ ...