An investor in shares of Theranos, Inc, filed a lawsuit against Theranos, Inc., Elizabeth Holmes and Ramesh “Sunny” Balwani over alleged violations of Federal Securities Laws.
Investors who purchased Theranos securities, directly or through a third-party, from July 29, 2013 through Oct. 5, 2016, have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 – 1554.
The plaintiff alleges that Theranos and its officers set in motion a publicity campaign to raise billions of dollars for Theranos and themselves, and to induce investors to invest in Theranos, all the while knowing that its “revolutionary” blood test technology was essentially a hoax.
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.
In late October 2015 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 2015 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 2015, 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.”
On April 13, 2016,it was reported that “federal health regulators have proposed banning Theranos Inc. founder Elizabeth Holmes from the blood-testing business for at least two years after concluding that the company failed to fix what regulators have called major problems at its laboratory in California.” Among other things, the regulators “found that Theranos failed to adequately correct 43 of 45 deficiencies identified by inspectors last year.”
On April 18, 2016,it was reported that federal prosecutors, with assistance from the FBI, had launched a criminal investigation “into whether Theranos Inc. misled investors about the state of its technology and operations.” As detailed in the article, federal officials requested information about Theranos in January and February, and followed those requests with “grand-jury subpoenas from a federal court in San Francisco in March.” In addition to the criminal probe, the article also reported that the SEC was “examining whether Theranos made deceptive statements to investors when it solicited funding.”
On June 12, 2016, the Walgreens pharmacy chain ended its relationship with Theranos and announced it would close all Theranos wellness centers immediately.
In July 2016, the Center for Medicare and Medicaid Services imposed sanctions on Theranos, including revoking the Company’s Clinical Laboratory Improvement Amendments (CLIA) certification, imposing a monetary penalty of $10,000 per day for each day of non-compliance with the conditions necessary for CLIA certification, and banning Holmes and Balwani, and thereby Theranos itself, from owning or operating a laboratory for at least two years.
On October 5, 2016, Theranos announced it was closing all of its clinical laboratories and patient testing centers and laying off approximately 340—more than 40%— of its employees.
In November 2016 Walgreens, sued Theranos for breach of contract.
Those who purchased shares of Theranos, Inc. have certain options and should contact the Shareholders Foundation.
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