Court Upholds Fraud Claims in Investor Class-Action Lawsuit Against Theranos, CEO Elizabeth Holmes and Other Officers
Hagens Berman Sobol Shapiro LLP is continuing its investigation of possible securities law violations by Theranos, Inc. and its management.
If you are an investor in Theranos financing rounds and suspect you have lost money, contact Hagens Berman Sobol Shapiro Partner Reed Kathrein, who is leading the firm’s investigation, at:
510-725-3000 or Theranos@hbsslaw.com
Our initial investigation indicates that Theranos may have made significant misrepresentations about the state of the Company’s technology and operations when it solicited investments.
On October 6, 2016, the Wall Street Journal reported Theranos would shut down its blood-testing facilities and dismiss more than 40% of its employees after regulators banned Theranos CEO Elizabeth Holmes from owning or operating a lab for two years.
“We’re probing Theranos’s relationships with investors, the representations made to them, and this apparently self-interested shift in business strategy,” said Hagens Berman partner Reed Kathrein. ”Sources indicate that Theranos sold stock in a Series C round to investor in 2014 and 2015. Normally, by the time of a Series C round, the technology or product is proven and the funds are used to expand the products’ presence in the market.”
Whistleblowers: Persons with non-public information regarding Theranos should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the SEC whistleblower program, whistleblowers who provide original information may receive rewards up to 30 percent of any successful recovery made by the SEC. For more information concerning your whistleblower options, call Reed Kathrein at (510) 725-3000 or email Theranos@hbsslaw.com.
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