NHS Covid start-up sued for fraud after contract cut

A COVID testing start-up that was paid to provide millions of rapid PCR tests to the Department of Health has been sued by one of its biggest shareholders.

DNA Nudge, a spin-out from Imperial College London that is backed by former Thai prime minister Thaksin Shinawatra, is facing a legal battle with shareholder Ventura Capital.

Ventura has accused the company of “fraudulent misrepresentation” and breach of contract. DNA Nudge has rejected Ventura’s claims.

Ventura invested nearly £30m in the Imperial College spin-out in 2021 as part of a deal that valued the start-up at £300m. But Ventura claims in legal filings at the High Court it initially agreed to the deal in the belief DNA Nudge had secured a £160m contract to supply the NHS with millions of tests.

DNA Nudge was founded by Prof Chris Toumazou with the promise that its tech could analyse a consumer’s DNA to give them feedback on lifestyle and nutrition. Amid the pandemic, in 2020 it turned to developing Covid testing kits and was picked to supply 5.8m tests to the UK. Ventura said it intended to invest up to £40m in January 2021.

But soon after, the DOH was allegedly disputing payment requests from DNA Nudge, accusing it of failing to deliver, according to Ventura’s court filings.

Ventura claims that before it paid a £22.5m tranche of its investment in April 2021, Prof Toumazou had insisted that “all is well” with the contract. The fund claims by that time government officials had said they would not pay and were trying to cancel the contract. The Government ultimately reduced the volume of tests it had ordered.

A DNA Nudge spokesman said its contract with the DOH came to an end in 2022 on an “amicable basis”. They said Ventura was “aware of the reduction in demand for DNA Nudge’s Covid testing kits” and agreed to “duly reduce the price of its shares” offered to Ventura in May 2021. The spokesman said it would “defend these proceedings through to trial if necessary”.

The start-up has countersued Ventura, accusing it of failing to pay up the final £10m tranche of investment.

Ventura did not respond to requests for comment.