Theranos agrees not to operate labs for two years


http://www.sfgate.com/business/article/Theranos-agrees-not-to-operate-labs-for-two-years-11079274.php

The Theranos lab in Newark Calif., seen on April 12, 2015. The company announced a settlement Monday with the Centers for Medicare and Medicaid Services that resolves all legal and regulatory proceedings between the federal agency and the embattled Palo Alto blood diagnostics firm. Photo: CARLOS CHAVARRIA, NYT

Theranos has reached a settlement with the Centers for Medicare and Medicaid Services that resolves all legal and regulatory proceedings between the federal agency and the embattled Palo Alto blood diagnostics firm, the company announced Monday.

Theranos has agreed to pay a penalty of $30,000 and cannot operate a clinical laboratory for the next two years.

As part of the settlement, the federal agency, which regulates blood testing labs, has withdrawn its revocation of Theranos’ lab operating certification.

Theranos, founded in 2003 by CEO Elizabeth Holmes, had been a high-flying startup that promised to revolutionize blood testing before a Wall Street Journal investigation alleged that the company misled people about the accuracy of its blood testing technology.

It is unclear whether the settlement has any bearing on investigations into the company by the Department of Justice and U.S. Securities and Exchange Commission. The company faces lawsuits from investors and Walgreens, its ex-partner that had been using Theranos blood-testing technology in dozens of stores before terminating the relationship.

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