Theranos, the 13 year old blood testing company, announced last week that it would shutter its blood testing laboratories and shift its attention to making blood testing machines. I wrote about that shutdown option in July. And last week I suggested that Theranos should return its capital to investors. On October 10, the Wall Street Journal reported that Partner Fund Management, a San Francisco hedge fund that had invested $96.1 million in Theranos, filed a lawsuit on Monday in the Delaware Court of Chancery which accuses the company of “myriad deceptions, falsehoods and fraudulent conduct.”
Theranos said it would fight the lawsuit and in a statement argued that Partner Fund “is engaging in revisionist history, making claims that are not rooted in facts. The company remains committed to its mission and is appreciative of its strong investor base that understands and continues to support those efforts.”
This lawsuit could push Theranos to return its capital to shareholders.
In a letter to its shareholders reviewed by the Times, Partner Fund alleged that Theranos engaged in “a series of lies, material misstatements and omissions. meticulously documented  due diligence myriad deceptions, falsehoods and fraudulent conduct by Theranos’s Holmes and in connection with PFM’s investment.”

from Forbes – Tech http://ift.tt/2dYvUZP
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