Theranos, Inc., the infamous and embattled blood-testing company, has agreed to pay the state of Arizona more than $4.65 million dollars in consumer restitution for blood tests that were allegedly misrepresented and, in some cases, voided.
The agreement, announced Tuesday by Arizona Attorney General Mark Brnovich’s office, comes after Brnovich alleged that Theranos’ advertisements in the state “misrepresented, omitted, and concealed material information regarding its testing service’s methodology, accuracy, reliability, and essential purpose,” the consent judgement reads. The state also alleged that Theranos was out of compliance with federal regulators.
Theranos denies any wrongdoing but agreed to pay to avoid a trial.
As part of the agreement, Theranos will pay out $4,652,000 in full refunds to all customers who purchased tests between 2013 and 2016. That includes approximately 175,940 Arizona consumers who ordered about 1.5 million blood tests yielding around 7.8 million results. About 10 percent of those results were later voided by the company, the court documents indicate.
Theranos will pay $200,000 in civil penalties, $25,000 in attorneys’ fees, and the costs for a claims administrator to dole out the refunds. The company is also prohibited from owning, operating, or directing a lab in the state for two years.
“This is a great result and a clear message that Arizona’s consumer protection laws will be vigorously enforced,” Brnovich said in a press release.
The deal is yet another blow to the company, which has shifted to device manufacturing following federal sanctions linked to technical and operational problems at its labs. The company is currently facing several other lawsuits, including ones from investors, as well as investigations from federal regulators.
The company is recently said to only have $150 million on hand, despite once being valued at $9 billion. Last month, The Wall Street Journal reported that Theranos founder and CEO Elizabeth Holmes was offering to give investors her personal shares of the company for free if they agreed not to sue.
Powered by WPeMatico