Theranos settles investors' lawsuit: 5 things to know

Theranos, the embattled blood-testing company formerly helmed by Elizabeth Holmes, has settled a shareholder lawsuit filed by investors, according to The Wall Street Journal.

Five things to know about the case and settlement:

1. The civil case was brought by former Silicon Valley investment banker Robert Colman and other indirect Theranos investors. They accused Theranos of falsely claiming its technology could diagnose nearly 200 diseases from a drop of blood.

2. In March, the company settled civil fraud allegations by the Securities and Exchange Commission. However, it did not admit or deny wrongdoing, according to the report. In June, Ms. Holmes, the founder of Theranos, resigned as CEO. Federal prosecutors subsequently filed criminal charges against Ms. Holmes and the company's former president and COO Ramesh Balwani, accusing them of defrauding investors, physicians and patients. 

3. Theranos avoided bankruptcy by securing a $100 million loan from Fortress Investment Group in December. However, the amount investors could potentially recover is dwindling amid the company's rising legal costs.

4. The terms of the latest settlement reached July 20 in the civil case were not revealed in court filings. An attorney representing Mr. Colman and the other plaintiffs, as well as David Taylor, Theranos's new CEO, declined to comment to the WSJ.

5. The July 20 settlement comes as an HBO documentary about Theranos is in the works. Filmmaker Alex Gibney has sought to make public video depositions from two Theranos cases, according to the WSJ. A judge ordered attorneys for Theranos to start the process of releasing at least parts of the videos. Screenwriter Vanessa Taylor, who co-wrote the Oscar-nominated film "The Shape of Water," also revealed she will write a screenplay for "Bad Blood," an upcoming movie about Theranos.

 

 

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