This article is more than 1 year old

Bio biz Theranos probed

Troubled blood-testing company Theranos has confirmed it is being investigated by the US Securities and Exchange Commission (SEC) and the US Attorney's Office over claims it misled investors and government officials.

In a letter to its partners, the company said it felt obliged to provide information on ongoing investigations after a slew of media reports on the company and its CEO Elizabeth Holmes.

The company, which was once valued at $9bn and hailed as the creator of a revolutionary blood-testing technique, has been on the back foot since a Wall Street Journal investigation last year revealed its technology didn't produce reliable results and the company was using traditional methods to carry out the vast majority of its tests.

Since then, the company's testing lab in California has been found to be out of compliance and will likely be shut down, and Holmes may be banned for two years of being in charge of any such facility.

The SEC is looking at whether investors were misled by Theranos and Holmes. And the federal investigators are looking into whether the company misled government officials – a criminal offense. ®

More about


Send us news