As we know, there have been investor lawsuits, along with those by consumers. Either or both could push Theranos into bankruptcy. It doesn't have adequate financial reserves for dealing with litigation.
The proposed solution? The Wall Street Journal reports:
"Theranos Inc. plans to give additional shares to investors who pledge not to sue the battered blood-testing company or Elizabeth Holmes, its founder and chief executive officer."
That offer includes investors from the 2015 round of funding which raised $600 million.
In addition, as another survival move, Holmes has transformed her enterprise from a blood-testing one targeted at consumers to a technology one. The technology being developed is the minilab. Essentially that's a small portable lab-testing device. Critics don't assess it as representing breakthrough technology.
But, salvation may elude Holmes. She is also being sued by consumers who contend her inaccurate equipment provided faulty data that allegedly created life-threatening conditions.
In addition, she is being investigated by the feds for possible criminal activity as well as allegedly misleading investors.
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