Troubled Theranos Settles Lawsuit With Hedge Fund That Invested Nearly $100M Into Company
In the lawsuit brought by San Francisco-based Partner Fund Management, the hedge fund alleged that Theranos misled its directors and funders, and used a shell company to "secretly" buy commercial lab equipment.
San Francisco Business Times:
Theranos Settles Lawsuits With S.F. Hedge Fund Partner Fund Management
Theranos Inc., the troubled blood testing company led by Elizabeth Holmes, settled two lawsuits with investor Partner Fund Management, it announced Monday without disclosing the terms of the settlement. The hedge fund had pumped $96.1 million into the company. It's the latest effort by Theranos to clear the tracks after dealing with multiple charges claiming securities fraud and other problems. Last month, the Palo Alto-based company reached settlements with the state of Arizona, where it agreed to pay consumers $4.65 million, and the federal Centers for Medicare and Medicaid Services, which regulates blood-testing labs. (5/2)