Sun. Feb 5th, 2023
Elizabeth Holmes, CEO of Theranos, speaks at the Clinton Global Initiative Annual Meeting in New York City on Sept. 29, 2015.
Enlarge / Elizabeth Holmes, CEO of Theranos, speaks at the Clinton Global Initiative Annual Meeting in New York City on Sept. 29, 2015.

If not one thing, it’s something else in the dizzying downward spiral of Theranos, once the darling of the Silicon Valley biotech sector.

On Friday, the Wall Street Journal reported that the company “allegedly misled corporate executives” regarding its lab testing and used a shell company to purchase commercial lab equipment. These are just some of the new revelations from the logincluding fake demonstrations for potential investors.

The new information came from unsealed statements by 22 former Theranos employees or members of the board of directors. They were deposed by Partner Fund Management LP, a hedge fund that is currently suing Theranos in Delaware state court. Theranos also faces multiple lawsuits in federal court in California and Arizona, among others.

The logwho did not publish the new filings quoted former Theranos executive Admiral Gary Roughead (retired), who said he was unaware the company was using “extensive commercial analyzers” until it was reported in the press.

Ars contacted the Delaware Court of Chancery to obtain the new files, but a clerk told us they were not yet on the docket. That clerk referred us to the law firm leading the case against Theranos, Heyman Enerio Gattuso & Hirzel, but lawyers there have not yet responded to our inquiry.

The log described the filings as “some of the first substantive details to emerge from several court proceedings against the company, though they contain only brief excerpts from the statements.”

Last year, federal regulators shut down Theranos labs and banned Holmes from the industry after problems with the company’s technology and practices came to light. Theranos appealed the sanctions, but later settled with regulators. In the settlement, announced this month, the company will pay $30,000 in fines and will not own or operate any clinical laboratories for two years.

Theranos did not immediately respond to Ars’ request for comment, but told the Journal that the documents “reflected a ‘unilateral submission by one party to a lawsuit.'”

In a related case currently pending in federal court in Arizona, attorneys representing Walgreens fired back Thursday against Theranos’ attempt to have the case dismissed. They called Theranos products in Walgreens stores “dangerously unreliable.”

On April 18, a federal judge in San Jose, California, allowed yet another lawsuit brought by yet another investor to move largely forward. That same day, Theranos reached an agreement with the Arizona Attorney General’s office: the company will reimburse state residents “for all amounts they paid for Theranos blood testing services between 2013 and 2016.” This amount totals $4.65 million.

Editor’s Note: This post has been updated with new information regarding Theranos’ appeal of federal sanctions.

By akfire1

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