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发帖数: 11530 | 1 Theranos investor: We want our $96 million back
by Sara Ashley O'Brien @saraashleyo
October 11, 2016: 12:23 PM ET
Theranos has voided two years of blood tests, faced federal probes and had
its founder banned from owning or operating a lab for two years.
And now, it's being sued by one of its biggest investors.
The embattled blood testing startup is being accused of securities fraud by
Partner Fund Management, which invested $96.1 million into Theranos in
February 2014.
The hedge fund claims that the company, founder and CEO Elizabeth Holmes,
and former chief operating officer Sunny Balwani engaged in "a series of
lies, material misstatements and omissions" in order to get them to invest.
That's according to a letter the hedge fund sent to its investors about a
lawsuit it filed on Monday.
"Theranos and its principals knowingly and repeatedly lied that they had
developed proprietary technologies that worked, were on the cusp of
receiving all necessary regulatory clearances and approvals, and concealed
the truth about the commercial viability of their technologies and methods,"
reads the letter, which was reviewed by CNNMoney.
The hedge fund is demanding that Theranos return its investment, and pay
unspecified damages on top of that.
This is the first time Theranos' investors have taken public action against
the startup.
Related: Theranos lawsuits start to add up
The company, which was once valued at $9 billion, has had a tumultuous year
after a Wall Street Journal investigation published in October 2015.
Theranos has since issued corrections for thousands of blood tests and
voided two years' worth of results from one of its devices. Holmes was
banned by the Centers for Medicare and Medicaid Services from owning or
operating a lab. And last week, the company announced it was pivoting away
from blood testing and focusing on developing new technologies.
That meant laying off 340 of its employees and shutting down its Wellness
Centers in Walgreens (WBA), once a significant retail partner for the
startup.
Partner Fund Management's complaint was filed in the Delaware Court of
Chancery, where it's sealed to protect confidential proprietary information.
PFM, which invests in healthcare and tech companies, wrote in the letter
that it hopes and anticipates that the complaint will be unsealed soon "to
be able to communicate further details about our claims."
The letter states that it's the first time PFM has taken part in a judicial
proceeding.
"It is regrettable that this matter must now be resolved through litigation.
Nonetheless, our responsibility to act in the best interests of our
investors is paramount and we are resolute in our determination to fiercely
protect and preserve their rights and remedies."
For its part, Theranos released a statement: "The suit is without merit, the
assertions are baseless, and the plaintiff is engaging in revisionist
history."
CNNMoney (New York)
First published October 11, 2016: 12:23 PM ET | W***n
发帖数: 11530 | | W***n
发帖数: 11530 | 3 Not too long ago,
people call Holmes a young "genius" |
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