Theranos Sued By Investor by PitchBook
Theranos is the target of a lawsuit filed by a hedge fund that invested $96 million in the startup, per The Wall Street Journal. The Partner Fund Management suit alleges, among other things, that Theranos claimed its technology could do more tests than it was actually capable of and that it overstated its progress through different FDA approval processes, according to the report.
The bad news just keeps coming for Theranos, which announced last week that it would be shutting down all its blood testing facilities and laying off about 340 workers. While existing investors have generally been quiet through the whole unraveling process this past year—with some even coming out in support of the company and its founder—this lawsuit may signal an even rougher future for the once high-flying startup.
Read our previous Theranos coverage here.
