Theranos is being attacked on two fronts.
One is the Centers for Medicare and Medicaid Services. It demands that problems in the labs be fixed or fines will be imposed. Those problems are labeled as a peril to users' health.
The other is Walgreens, its only retail customer. It plans to suspend its agreement with Theranos unless those problems are fixed within 30 days. Here are the details from The Wall Street Journal.
The interesting part of this is this: Theranos' founder and head, Elizabeth Holmes, has, reports The Wall Street Journal, "suggested that Walgreens might be in breach of its contract with Theranos for suggesting the suspension."
This threat might have legal teeth in it and Walgreens should be wary. That's because brilliant and innovative lawyer, David Boies, is on the Theranos board. It was Boies who successfully represented hedge fund player, Steve Cohen, against the SEC. Cohen came out of that ready for a comeback.
In Theranos' defense, it is subject to greater regulatory scrutiny because it is direct-to-consumer. The usual route for labs is to get their business through doctors' offices. Also, because of this and its lower transaction costs, Theranos is a threat to the lab industry. It might be thought of as the Uber of blood-testing.
For a long time it was the darling of both the tech and media worlds. Its valuation as of 2014 was about $9 billion. Then, last October The Wall Street Journal did an expose on it. Other media properties followed that negative thrust.
But, as long as Holmes has Boies in her corner, she has a shot at survival.