Gritstone Bio Inc.‘s ex-CEO agreed to set aside $6 million to resolve investor allegations he overhyped the now-bankrupt biotech company’s timeline for launching a government-funded study of its potential Covid-19 vaccine.
The settlement will be paid by former CEO Andrew Allen‘s insurers, the investor leading the suit said in a May 15 filing, seeking US District Court for the Northern District of California Judge Charles R. Breyer‘s preliminary approval of the deal. The accord would end proposed class allegations that Allen misrepresented Gritstone’s capability to produce a vaccine and satisfy its related government contract. Investors dropped Gritstone ...