Talis Biomedical Agrees to Settle Investor Suit for $33 Million

Talis Biomedical Corp. and investors who allege it misled them about the progress of its Covid-19 testing system have agreed to a nearly $33 million settlement, according to a federal court filing.

The deal merits preliminary approval, the investors told the US District Court for the Northern District of California on Tuesday. The settlement amount consumes more than half of the biomedical company’s remaining cash as it heads toward Chapter 11 bankruptcy, they said.

Lead investor Martin Dugan alleged that the company wasn’t capable of producing the testing platform, Talis One, to scale, and that Talis botched its application for ...