Labcorp DNA Sequencing Lawsuit Ends in Midtrial Settlement

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Labcorp DNA Sequencing lawsuit

A high-profile courtroom showdown over DNA sequencing patents has ended abruptly. Labcorp and Natera reached a midtrial settlement in a bitter dispute over genetic testing rights, halting a Delaware jury trial that had gripped the biotech sector.

U.S. District Judge Gregory B. Williams confirmed in an oral order Tuesday that Laboratory Corp. of America Holdings and rival Natera Inc. resolved the litigation on Sept. 12, just five days into proceedings. The terms of the deal remain shrouded in secrecy, with no details publicly disclosed as of Wednesday.

The judge directed both companies to either file a dismissal notice or submit a joint status report by Oct. 13.

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Origins of the Dispute

The lawsuit traces back to 2021, when Invitae Corp. first accused Natera of infringing three patents tied to DNA sequencing methods. The patents—Nos. 10,604,799; 11,149,308; and 11,155,863—cover genetic testing processes used to detect mutations.

After Invitae filed for Chapter 11 bankruptcy in February 2024, Labcorp swooped in, purchasing some of Invitae’s assets and taking over as plaintiff in April.

At the heart of the litigation was Natera’s commercial liquid biopsy test, Signatera, a product launched in 2017 to detect colorectal cancer recurrences. Labcorp argued that Signatera unlawfully encroached on patented sequencing technology.