Novacyt: stock spirals on litigation settlement

(CercleFinance.com) - Novacyt shares fell sharply in Paris on Tuesday after announcing that it would have to pay £5m (around E5.
9m) to settle a dispute with the UK Department of Health and Social Care (DHSC).

The Franco-British diagnostics group says it has reached a commercial settlement that puts an end to all claims and demands made by the government in High Court proceedings.

In 2022, the DHSC brought a claim against Novacyt in a contractual dispute over a contract to supply rapid tests against Covid.

The trial, which was due to start this week, will therefore not take place.

In a press release, Novacyt stresses that neither party has admitted any liability or wrongdoing in the matter.

Following these announcements, the share price was down by more than 16% in late morning trading.


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