Another lawsuit has been filed against the medical technology company.
Theranos is a health-technology company which was founded in Palo Alto 13 years ago. The company boasts a full range of over 240 laboratory tests, using breakthrough advancements in medical science, and with over $400 million in investments, it is valued at $9 billion. However, many of the claims made by the company seem to have been unsubstantiated. In recent months, it has faced lawsuits following allegations that investors had been lied to about the company’s health and prospects by CEO Elizabeth Holmes and former COO Ramesh “Sunny” Balwani. Now, the company is being sued again, for a third time.
The first lawsuit was a $140 million suit filed by Walgreens, a former lab testing partner that wants a refund on the money they invested in the company. A second lawsuit, by San Francisco-based hedge fund Partner Fund Management, claimed that Theranos had fraudulently induced it to invest through a web of “lies, material misstatements, and omissions.”
Promotional shot of “breakthrough advancements” from Theranos Inc.’s website
Hilary Taubman-Dye is a plaintiff in the new lawsuit, and purchased stocks in the company at $19 a share in 2015. After the Wall Street Journal began questioning the company’s claims, she and other investors attempted to cancel their transactions, but were unable to do so. A second plaintiff is Robert Colman, a prominent banker who co-founded the once power Silicon Valley-based Robertson Stephens Investment bank. He invested in the Theranos in 2013 through a venture capital group. The lawsuit involves anyone who “directly or indirectly purchased or committed to purchase Theranos securities from July 29, 2013, through October 5, 2016.” A San Fransisco lawyer attached to the case says there could be potentially hundreds of more plaintiffs represented in the case.
The filing can be found here.
source: Wall Street Journal