Theranos is being accused of running fake tests using outside lab gear

pulse

April 21, 2017 7:26 PM

Theranos is being accused of using a shell company to purchase commercially available lab equipment and ran fake tests on that technology, the WSJ reports.

Elizabeth Holmes, founder and CEO of Theranos, speaks at the Wall Street Journal Digital Live (WSJDLive) conference at the Montage hotel in Laguna Beach, California, October 21, 2015.

New court filings allege that Theranos used a shell company to purchase commercially available lab equipment and faked blood tests in presentations with prospective investors and business partners, The Wall Street Journal reported Friday.

The documents were filed as part of Partner Fund Management's lawsuit against the blood-testing company.

Before October 2016, Theranos's business model was based around the idea that it ran blood tests using proprietary technology that requires only a small amount of blood.

Theranos said in a statement:

Read the full Wall Street Journal story here.Partner Fund originally sued Theranos in October 2016, claiming the company had engaged in securities fraud. The firm had invested $96.1 million in Theranos in 2014.

It's been a busy week for Theranos.

Theranos said that it had settled up with Centers for Medicare and Medicaid Services
the government agency responsible for regulating blood-testing labs.

an investigation running a clinical lab

The company faces lawsuits from investors, patients, and its once partner Walgreens, which ended its relationship with Theranos in June 2016 and is accusing Theranos of breaching its contract. Theranos has said it will "

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