And, as many know, superlawyer David Boies is not longer representing the startup. It and he parted company over disagreements about how to handle the regulatory legal issues. The scary part of this latest development for Theranos is that it could go class-action.
"The latest suit ... by Robert Colman, co-founder of investment firm Robertson Stephens, and another private defendant and Theranos share purchaser named Hilary Taubman-Dye, allege that Theranos consistently and deliberately misled its investors through outsize claims about its technology's capabilities and potential to transform diagnostic testing."
Theranos could get from under all the litigation facing it by filing for bankruptcy. Meanwhile, its founder Elizabeth Holmes has tried an end run to save the firm.
She ditched the lab testing operations. There is no more patient contact. Instead, she has created a technology enterprise. In it, she is developing the minilab. That's a portable device which can do testing wherever. She had been banned from the lab testing industry for two years. She is appealing that ban.
It was only about 13 months ago that The Wall Street Journal broke the story questioning Theranos' technology. After that, this one-time darling of the media and investors fell quickly from grace.
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