The UK has agreed to settle a lawsuit over how it selected an IT contract for coronavirus testing at its (private sector) Lighthouse labs.

British company Diagnostics AI claimed it lost out to a European rival UgenTec despite spotting some positive coronavirus cases its rival missed. It sued the government over the decision, claiming the selection process was "unfair and unlawful".

The dispute was due to be played out in court. It would have meant a public examination of the accuracy and speed of the testing system, at a time when it has come under serious criticism. But the government has decided to settle the case and will pay Diagnostics AI compensation and most of its legal fees.

However, despite agreeing to the payout, the government has refuted the claims made by Diagnostics AI, saying they are "inaccurate".