In Pact With Federal Health Officials, Theranos Says It Will Not Operate Blood Labs For 2 Years
The company still faces probes by the Department of Justice and the Securities and Exchange Commission over its blood testing business.
The Wall Street Journal:
Theranos Agrees Not To Operate Blood Lab For Two Years
Theranos Inc. and its founder pledged to stay out of the blood-testing business for at least two years in exchange for reduced penalties from federal health authorities, in an agreement that resolves a year-long regulatory impasse. The main lab regulator first had proposed barring Elizabeth Holmes from the medical-lab business for two years in March 2016 after the company failed to correct testing problems at its main lab in Newark, Calif., ones that inspectors earlier had said put patients in “immediate jeopardy. (Weaver, 4/17)
San Francisco Chronicle:
Theranos Agrees Not To Operate Labs For Two Years
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. (Ho, 4/17)