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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.

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.

Court Battles Before the Settlement

The trial followed months of heated pretrial maneuvering. In August, Judge Williams denied Labcorp’s push to prevent Natera from challenging the patents’ validity, noting that one of Natera’s experts had provided a sufficiently rigorous theory that warranted jury consideration.

The judge criticized Labcorp’s attempt to use a pretrial motion to secure a ruling on patent eligibility, calling it an improper shortcut.

However, Judge Williams barred both sides from introducing evidence about Labcorp’s alleged retaliatory motives, ruling that accusations of revenge litigation had no bearing on patent rights.

A Pattern of Fierce Rivalry

This case is only the latest skirmish in a series of courtroom clashes between the two diagnostics giants. In one prior dispute, Natera secured a staggering $384 million judgment against Labcorp, underscoring the high financial stakes riding on biotech intellectual property.

Neither company disclosed whether this new settlement might pave the way for broader peace or simply pause another chapter in their ongoing rivalry. A Natera spokesperson declined to comment, while Labcorp representatives remained silent.

Legal Teams Behind the Battle

Labcorp was represented by Brian E. Farnan and Michael J. Farnan of Farnan LLP, along with Edward R. Reines and Derek C. Walter of Weil Gotshal & Manges LLP.

Natera’s defense team included Karen Jacobs, Brian P. Egan, and Derek J. Fahnestock of Morris Nichols Arsht & Tunnell LLP, supported by Eric Alan Stone, Daniel J. Klein, Eliza P. O’Connor, and Ariella C. Barel of Groombridge Wu Baughman & Stone LLP.