Hagens Berman Ups Investigation of Theranos, Inc. In Light of Deficiencies Found by Federal Regulators and Predatory Pricing Concerns
San Francisco - Hagens Berman Sobol Shapiro LLP is deepening its investigation of Theranos, Inc. in light of recent reports of deficiencies found by federal regulators which put Theranos at risk of losing its Medicare and Medicaid certification. Series C investors, and persons with knowledge relevant to the investigation may contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000, emailing [email protected] or visiting http://hb-securities.com/cases/theranos.
The Wall Street Journal continues to reveal information which calls into question the credibility of Theranos’s technology, management, and now safety practices. Last fall, the newspaper published several articles that questioned the Company’s claims of having a marketable technology to conduct blood tests via a finger-stick rather than using vials of blood, like in traditional tests.
On January 27, 2016, the Journal reported that Federal inspectors released a letter sent to Theranos listing problems uncovered at Theranos’s blood-testing facility, including major infractions in the following five categories: hematology; analytic systems; laboratory director; technical supervisor; and testing personnel. One posed “immediate jeopardy to patient health and safety.”
The firm is also probing Theranos’s documented relationships with its investors. Questions have arisen related to how much discretion the Company has over the use of investor funds within its offering documents, and how much their recourse is limited by such documents. Potentially deceiving to investors is whether Theranos disclosed that, according to reports, it is outsourcing blood tests at a significant loss – such as paying $300 for outside labs to perform tests Theranos charges less than $10. Questions have also been raised by competitors of predatory pricing.
If you are an investor in the Series C rounds, or any other form of investing in Theranos, or have information relevant to our investigation, please feel free to contact us. At this stage, Hagens Berman is only investigating this matter and Theranos’s claims.
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 [email protected].
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Reed Kathrein, 510-725-3000