aibioRecursion and its lab landlord remain in Utah court over lease construction claims
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Industry Office SLC sued Recursion in 2023 for breach of contract; Recursion counterclaimed for breach and fraudulent misrepresentation. Both sides are in discovery. An Exscientia class action ended in December 2025.
Key facts
- Company
- Recursion Pharmaceuticals, Inc. (NASDAQ: RXRX)
- News type
- Legal
- Primary source
- Recursion Pharmaceuticals 10-Q for the quarter ended June 30, 2026 (SEC EDGAR)
Recursion Pharmaceuticals (Nasdaq: RXRX) said in its 10-Q filed August 5, 2026 that it is still in discovery in a Utah lawsuit with the landlord of a laboratory and office lease. Industry Office SLC, LLC sued Recursion on June 23, 2023 in Industry Office SLC, LLC v. Recursion Pharmaceuticals, Inc., Case No. 230904627, in the Third District Court for Salt Lake County, State of Utah. Recursion is the defendant on the landlord's claims and the plaintiff on its own counterclaims against the landlord.
The 10-Q describes no other lawsuit. Recursion's earlier 10-K, filed February 25, 2026, reported a separate securities class action over Exscientia plc that was dismissed with prejudice in December 2025. It is covered below.
The case
In February 2021 Recursion entered a lease for laboratory and office space, which the filing calls the Industry Lease. In March 2023 it sent the landlord a letter listing numerous construction delays and irregularities, deficiencies and deviations from the structural drawings, and non-conforming conditions under applicable building codes. The filing calls these the Claims.
The landlord's lawsuit, amended in October 2023, alleges anticipatory repudiation, breach of contract and breach of the implied covenant of good faith and fair dealing. It seeks monetary damages and attorney's fees. In September 2023 Recursion filed its own claims against the landlord alleging, among other things, breach of contract and fraudulent misrepresentation. The landlord answered in October 2023 and denied them. The filings do not state the amounts either side seeks.
Defendants
Recursion Pharmaceuticals, Inc. is the defendant on the landlord's claims. Industry Office SLC, LLC is the defendant on Recursion's counterclaims. The filings name no individuals in this case.
Where it stands
An earlier 10-Q filed November 9, 2023 shows how the pleadings developed. Recursion moved to dismiss the first complaint in July 2023, and the court granted that motion in September 2023 and gave the landlord until October 23, 2023 to amend. The landlord filed its amended complaint that day, and Recursion moved to dismiss it on November 6, 2023. Later filings do not describe a ruling on that motion. They say the two sides are engaged in discovery, and no trial date appears in them.
As of June 30, 2026, Recursion had recorded no liability for these events because it considers an unfavorable outcome not probable. It says it cannot estimate the possible amount or range of damages tied to its counterclaims.
Related matters
The class action, Campanile v. Exscientia plc, Case No. 1:24-cv-05692, was filed in April 2024 in the U.S. District Court for the District of New Jersey. A separate complaint, Case 1:24-cv-07181, followed in June 2024. They named Exscientia plc, Andrew Hopkins, Ben R. Taylor and David Nicholson. The plaintiffs alleged false and misleading statements about Exscientia's business, operations and prospects, on behalf of people who bought Exscientia securities between March 2022 and February 2024.
The court consolidated the cases, and the plaintiffs filed an amended complaint on November 11, 2024 against Exscientia plc, Hopkins and Nicholson. Recursion moved to dismiss on January 21, 2025. The court granted that motion in October 2025 without prejudice, no new complaint followed, and the court dismissed the amended complaint with prejudice in December 2025, according to the 10-K.
Why it matters to shareholders
Recursion says an unfavorable resolution of any legal proceeding could materially affect its future financial position, results of operations or cash flows. It has agreed to indemnify its officers and directors for certain events and buys directors and officers liability insurance. It recorded no liabilities under those agreements at June 30, 2026 because no amounts were probable.