In a recent development, Talis Biomedical Corp (NASDAQ:TLIS) has entered into a settlement agreement to conclude a securities class action litigation. The settlement, dated August 29, 2024, stipulates that the company will contribute $32.5 million to a fund intended to resolve claims related to its February 2021 initial public offering (IPO).
The lawsuit alleged that Talis Biomedical's registration statement and prospectus were misleading, failing to disclose material adverse facts concerning its product manufacturing and the reliability of its COVID-19 test. The settlement will cover all claims against the company and its co-defendants, which include certain current and former officers and directors, as well as the IPO underwriters.
According to the terms outlined, Talis Biomedical's insurance carriers are expected to fund approximately $5 million of the settlement, with the remaining $27.5 million to be paid from the company's cash reserves. A third-party administrator will manage the settlement fund, ensuring that class members are notified and compensated.
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