Following allegations that the company had staged fake blood tests using commercial-lab equipment to impress investors, Theranos announced today that it has reached a settlement in two lawsuits being levied against the company by one of its investors, Partner Fund Management L.P. The hedge fund initially sued Theranos for nearly $100 million, alleging Holmes & Co. had lied about the abilities of the company’s blood technology to get them to invest. (PFM invested $96 million in Theranos in 2014.) Throughout the duration of the suit, Theranos denied any and all allegations.
The terms of the settlement between the company and the hedge fund remain confidential, Theranos also announced in a press release today. “Theranos is pleased to have resolved both lawsuits with PFM. Although we are confident that we would have prevailed at trial, resolution of these two cases allows our tender offer to go forward and enables us to return our focus where it belongs, which is on executing our business plans and delivering value for our shareholders,” Theranos general counsel David Taylor said of the settlement.
Now, Theranos says it will be able to channel all its energy and capital into its miniLab technology. The miniLab is, at least theoretically, a testing device that reportedly scans for up to 40 diseases using only a small blood sample. Back in October, after closing all remaining clinical labs and Theranos Wellness Centers, and laying off 40 percent of the company’s staff, Elizabeth Holmes announced that the miniLab would be the company’s sole focus. There has been some skepticism surrounding the miniLab technology, so as with all Theranos technology, we’ll just have to wait and see if it ever actually materializes. And then, someone should probably double-check that it actually works.
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