An investigation for investors in Theranos, Inc shares was announced over potential breaches of fiduciary duties by certain officers and directors at Theranos, Inc .
Investors who purchased shares of Theranos, Inc have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 – 1554.
The investigation by a law firm concerns whether certain Theranos, Inc officers and directors breached their fiduciary duties and caused damage to the company and its shareholders.
Between February 2014 and March 2015, Theranos, Inc reportedly sought to raise over $632 million from investors selling Series C-2 preferred shares for $17 per share, and was valued at over $9 billion.
Theranos, Inc had reportedly plans to seek another $200 million from the sale of Series C- 3 preferred shares for $20 per share in October 2015.
However, beginning in mid-October 2015 news reports questioned Theranos’ claims to have a marketable technology which would allow Theranos Inc to conduct hundreds of types of blood tests via a finger-stick rather than using vials of blood, like in traditional tests. The report quoted unnamed current and former employees that revealed that Theranos’s flagship Edison testing device might provide very inaccurate results and claimed that Theranos, Inc cherrypicked which data to report to regulators.
Theranos, Inc responded at length to the article.
Other news reports questioned Theranos’ claims to have had partnerships with GlaxoSmithKline and Pfizer, which both companies reportedly denied.
In late October it was reported Walgreens suspended their expansion plans to roll out new Theranos’s blood-testing services in their stores until Theranos Inc resolves questions about its technology.
In November it was reported that Safeway and Theranos Inc are dissolving an agreement dating back to 2011, in which Theranos would provide blood-testing services through Safeway-installed clinics. Safeway Inc. spent about $350 million to build clinics in more than 800 of its supermarkets to offer blood tests by startup Theranos Inc. But the clinics are now used largely for flu shots and travel-related vaccines.
On December 20, it was reported that U.S. health regulators are investigating complaints about laboratory and research practices at Theranos Inc. by two former Theranos employees.
On December 27, 2015, it was reported that two former employees are accusing Theranos Inc. of deleting the quality control data of its proprietary machines and cherry-picking data when comparing those machines with traditional lab machines.
On January 27, 2016,it was reported that “Federal inspectors found ‘deficient practices’ at a Theranos, Inc. laboratory that ‘pose immediate jeopardy to patient health and safety.’”
On March 8, 2016, it was reported that a “federal inspection report said a Theranos, Inc. laboratory ran an important blood test on 81 patients in a six-month period despite erratic results from quality-control checks meant to ensure the test’s accuracy,” and that “[i]naccurate results from the test can be especially serious for patients.”
Those who are an investor in the Series C rounds, or any other form of investing in Theranos, Inc, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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