Theranos Agrees To Full Refunds For All Of Its Arizona Customers
The settlement, the second in two days to hit the troubled blood-testing startup, will cost the company about $4.65 million.
The Associated Press:
Theranos Agrees To Pay $4.65 Million In Arizona Refunds
Embattled blood testing company Theranos, Inc. has agreed to pay $4.65 million to cover full refunds for every Arizona customer who used the company's testing services, Arizona Attorney General Mark Brnovich announced Tuesday. The settlement with the Palo Alto, California-based company covers more than 175,000 Arizonans who paid for blood tests between 2013 and the suspension of Theranos services last year, Brnovich said. (4/18)
The Wall Street Journal:
Arizona Attorney General Reaches Settlement With Theranos
The pact is the second legal settlement in two days involving claims that Theranos had faulty blood-testing technology or lab practices. On Monday, Theranos resolved regulatory and legal matters with federal health regulators after the company and its founder Elizabeth Holmes agreed to stay out of the medical-lab business for two years. Theranos has said it has shifted its focus to developing lab equipment to sell to other companies rather than doing tests itself. (Weaver, 4/18)
Stat:
Theranos To Return Every Dollar It Made On Tests In Arizona
Embattled diagnostics startup Theranos said it will return $4.65 million to Arizona residents for the blood testing services they received between 2013 and 2016. ... Some 1.5 million blood tests were performed on 175,000 customers — and more than 10 percent were ultimately voided. The deal, made with the Arizona attorney general’s office, is Theranos’s second for the week: The Silicon Valley company also told the Centers for Medicare and Medicaid Services that it wouldn’t conduct any blood testing for at least two years, in exchange for pared-down penalties from federal health authorities. (Keshavan, 4/18)
Arizona Republic:
Theranos Reaches $4.65 Million Fraud Settlement With Arizona
Neither settlement affects the numerous civil lawsuits filed by consumers, investors and Theranos' former retail partner, Walgreens, in Arizona and other states. (Alltucker, 4/18)
