Theranos is reportedly under criminal investigation in the US

Theranos is reportedly under criminal investigation in the US

By Jacob Kastrenakes on April 18, 2016 07:50 pm Email @jake_k
http://www.theverge.com/2016/4/18/11455896/theranos-federal-investigation-started-sec-doj-report

Federal agencies are investigating whether Theranos made misleading statements about the effectiveness of its medical tests, according to The Wall Street Journal. The US Attorney’s Office has reportedly begun issuing subpoenas to Theranos partners, like Walgreens, to learn how the company pitched its technology.

The investigation is said to be early. It’s not known whether prosecutors are actively seeking charges, but the Journal points out that misleading government officials can be a crime. Investigators are trying to determine if that happened.

DOJ AND SEC WANT TO KNOW WHAT THERANOS SAID IT WOULD BE ABLE TO DO

In addition to the Justice Department’s investigation, the US Securities and Exchange Commission is also reported to be looking into whether Theranos misled investors. Theranos is not a public company, but it had privately raised $752 million as of last October, according to the Journal.

Theranos has been under close scrutiny since a series of reports last year, starting in The Wall Street Journal, indicated that the company was incapable of doing much of what its technology promised to accomplish. Theranos claimed to be able to perform over 240 tests on a single drop of blood; in reality, many of its tests were being run by older lab equipment.

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