C&T Investigates Theranos, Inc. on Behalf of Investors
Chimicles & Tikellis LLP is investigating the facts and potential legal claims surrounding Theranos, Inc., a blood testing laboratory, and reports that Theranos may have misled its investors about the state of its technology and operations.
In October 2015, news reports broke that Theranos utilizes its finger-stick samples blood testing technology in only one test – a herpes test – despite its online menu advertising roughly 200 tests. In a January 2016 article, the Wall Street Journal reported that “federal inspectors found ‘deficient practices’ at a Theranos Inc. laboratory that ‘pose immediate jeopardy to patient health and safety’.” The January article further reported that a federal inspection had “uncovered five major infractions that violate the federal law governing clinical labs,” and that one infraction was defined “as a situation ‘likely to cause, at any time, serious injury or harm, or death, to individuals served by the laboratory or to the health and safety of the general public.'” Most recently, on April 18, 2016, the Wall Street Journal reported that federal prosecutors are investigating whether Theranos misled its investors about its blood testing technology and operations. The Securities and Exchange Commission is also investigating whether Theranos made false and deceptive statements when it solicited millions of dollars in funding from investors. According to the April 18 Wall Street Journal report “Walgreens Boots Alliance Inc. and the New York State Department of Health have received subpoenas in recent weeks seeking documents and testimony about representations made to them by [Theranos].” Notably, Walgreens has been Theranos’ main conduit to consumers since the companies announced a partnership in 2013 that resulted in the creation of 40 Theranos wellness centers in Arizona Walgreens drugstores. As part of that partnership, Walgreens reportedly invested at least $50 million into Theranos. Theranos was valued at $9 billion in a 2014 round of funding.
Theranos investors who wish to discuss this investigation and potential legal action should contact the attorneys listed below.