Theranos has recently been the subject of Theranos Lawsuits. In a recent article, I outlined how Theranos’ blood testing services were unreliable, and how it misled investors and other entities about their effectiveness. Those who believe Theranos’ methods are defective should consult an attorney who specializes in these cases. Ultimately, if you are considering filing a lawsuit, consider contacting an attorney today.
Theranos’s blood testing services were unreliable
While Theranos’s technology did appear to be a breakthrough, it has received a bad reputation as a result of multiple scandals. For example, the company’s blood testing services were unreliable after it was revealed that the results were faulty. The study revealed that there were discrepancies between Theranos’s results and those from other testing services such as Quest Diagnostics and LabCorp. Researchers cited several factors, including the quality of the blood sample collection, for the unreliability of Theranos’s results.
The company’s management team did not possess the expertise to develop sophisticated medical testing technology, and the board of directors was composed of former military and diplomats. The CEO, Erika Cheung, was also fresh out of college when she became a key source for Carreyrou in 2015.
It misled Walgreens about its effectiveness
The lawsuit alleges that Theranos misled Walgreens regarding its blood-testing technology. A class action suit against Walgreens was filed in 2016, and seven lead plaintiffs asserted more than a dozen claims on behalf of the Class of consumers who had their blood drawn at a Theranos Wellness Center inside an Arizona or California Walgreens location. Ultimately, the district court certified the class last year. The plaintiffs allege that the defendants violated the Arizona Consumer Fraud Act, California Unfair Competition Law, California False Advertising Law, battery, and unfair trade practices.
The lawsuit alleges that Theranos misled Walgreens by misrepresenting the accuracy of the devices and its legal issues. While the company initially claimed that its devices would be able to process samples in minutes, it later admitted that its proprietary devices were not up to the task. The devices could only run one blood sample at a time, so it was necessary to purchase commercial analyzers and modify them so that they could process smaller samples.
It misled patients
Prosecutors charged Elizabeth Holmes with misrepresenting the health risks of blood tests and deceiving investors into thinking their company could detect illnesses with a finger prick. Holmes has denied the charges. However, the evidence provided by the government suggests that the company lied about its tests and exaggerated the results to gain millions of dollars in investment. She falsely claimed that her blood-testing technology was vetted by Pfizer and the US military.
Holmes caught the attention of business leaders and head of state with her company’s promise of blood-testing tests that would detect cancer. She also attracted billions of dollars in venture capital from high-profile investors including Rupert Murdoch, the DeVos family, and the Waltons. Her success earned her the title of the world’s youngest self-made woman billionaire. However, Holmes’ business model crossed the line into fraud when she began to raise money and lied about the number of tests performed on her patients.
It misled investors
After launching a blood-testing company that promised to revolutionize the blood-testing industry, Theranos fell victim to Silicon Valley hubris and hype. According to the SEC complaint, Holmes misled investors by overstating Theranos’ revenue and business relationships and misleading consumers about its technology. The company swindled investors out of more than $1 billion in investment. Regardless of whether the allegations are true, the company’s failure to deliver on its promises is troubling.
Holmes was back on the witness stand Monday, testifying about her company’s blood-testing technology. She talked about the positive results from early studies. Holmes has denied all charges of fraud. Despite the scandal, she’s still accused of lying about Theranos’ technology and its speed. The government claims that Holmes lied about the accuracy, but the company has maintained that they were simply following industry trends. Holmes is awaiting trial on charges of fraud and misrepresentation.
It misled consumers
Elizabeth Holmes, the former CEO of the blood-testing company Theranos, spent five hours on the witness stand Tuesday. During the trial, the prosecutor sought to prove the federal charges that she misled consumers about her company’s blood-testing technology. Holmes struggled to remember key events that triggered fraud charges. Her testimony is being analyzed to determine if her claims are true. Holmes may be guilty of deceiving consumers to earn millions.
Walgreens and Theranos have denied any wrongdoing. However, the federal judge decided to throw out seven of the categories of claims and allowed 13 to move forward. The company voluntarily dropped the heart attack claim. Until now, the company has denied all allegations. The company is now trying to get the case dismissed, but will it be enough? Consumers are enraged. They may never get their money back.