An unusually long feature article in The Wall Street Journal details the medical risks and emotional agony Theranos allegedly inflicted on those using its lab services in Arizona and California.
By Christopher Weaver, the article contends that Theranos was not just an alleged raw deal for investors. Those investors have filed lawsuits. Among their contentions is that Theranos misled them about the technology.
The startup also allegedly foisted on human beings inaccurate data about aspects of their health. Those faulty lab results involved serious medical conditions, including heart disease, breast cancer, and diabetes.
No surprise, victims in AZ and CA have filed at least 10 lawsuits in federal court. They are aiming for them to be class action ones.
At this time, Theranos indicates it will fight the lawsuits. In addition, it is appealing the regulatory ban on operating lab testing facilities. The ban also prohibits Theranos founder Elizabeth Holmes to be in the lab-testing industry for two years. Superlawyer David Boies is on the Theranos board and has advised Holmes.
Recently, Holmes made a major shift. She changed the business of Theranos from actual lab testing and dealing with patients to developing the technology which would be sold to labs. The major focus is on the minilab. That's a portable testing device. As a result of the new orientation, nearly 400 employees were laid off.
Some speculate that Theranos will deal with the litigation problem by filing for bankruptcy.