Emergent Reaches $40 Million Deal Over Covid Vaccine Blunders

Emergent BioSolutions Inc. reached a $40 million class action settlement to settle allegations that it misled investors about its ability to manufacture Covid-19 vaccines.

The lawsuit, filed in the US District Court for the District of Maryland, claimed that Emergent wasn’t earnest about the capabilities of its Bayview facility in Baltimore when it reached $1.5 billion worth of deals with the federal government, Johnson & Johnson, and AstraZeneca Plc to manufacture Covid-19 vaccines. The company’s stock initially soared after those deals, but tanked after repeated contamination incidents and the loss of its federal contract.

The settlement “is nearly three times ...