On April 18, 2016, The Wall Street Journal reported that federal prosecutors, with assistance from the FBI, had launched a criminal investigation "into whether Theranos Inc. misled investors about the state of its technology and operations." As detailed in the article, federal officials requested information about Theranos in January and February, and followed those requests with "grand-jury subpoenas from a federal court in San Francisco in March." In addition to the criminal probe, the article also reported that the SEC was "examining whether Theranos made deceptive statements to investors when it solicited funding."
More recently, on October 5, 2016, Theranos announced that it would close its blood-testing facilities and reduce its workforce by more than 40 percent. As reported by The Washington Post, "[t]he move comes nearly three months after federal regulators banned Holmes from owning or running a medical laboratory for two years. … The probe followed reports by The Wall Street Journal in which former employees said the company's tests were unreliable."
The lawsuit alleges that certain investors were fraudulently induced to make their investment in Theranos securities. Because not all investors are included in the action, Theranos investors are encouraged to contact Kessler Topaz Meltzer & Check for additional information and to discuss their legal options.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
Darren J. Check, Esq.
D. Seamus Kaskela, Esq.
Adrienne O. Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
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SOURCE Kessler Topaz Meltzer & Check, LLP