Blood-Testing Firm Theranos Inc. is facing criminal investigations by the U.S. Securities and Exchange Commission and federal prosecutors over questions of irregularities in its tests. The widening probe came after the company claimed it would revolutionize the medical diagnostic business by only using cheap tests.
Theranos has been placed under investigation by other agencies, including the State Departments of Health in Pennsylvania and Arizona, the U.S. Food and Drug Administration, and The Centers for Medicare and Medicaid (CMS). The company is also being investigated whether they deceived investors about its technology.
Reuters claims that the Departments of Health of Pennsylvania and Arizona and the FDA have ended its probe. Apart from the agencies, the Securities and Exchange Commission and the U.S. Attorney's Office for the Northern District of California also launched its own examination in Theranos' case.
"The company continues to work closely with regulators and is cooperating fully with all investigations," Theranos spokeswoman, Brooke Buchanan, said.
The investigations among US regulators started when reports about Chief Executive Officer Elizabeth Holmes and her questionable profile surfaced. According to Bloomberg, Holmes was profiled as a "wunderkind" and an undergrad of Stanford University. The once depicted $9 billion company was placed under fire after it claimed that it could revolutionize the medical diagnostics business by only using cheap tests and a few drops of blood. Holmes continue to lead Theranos and became a self-made billionaire.
Theranos claimed that they were placed into investigations following the reports that were published by The Wallstreet Journal. The publishing said that a federal inspection report showed that most of the blood-testing devices that the company are using often don't meet the standards. Other failures of Theranos include unqualified medical personnel, lack of proper documentation, and substandard temperature. A former employee also questioned the accuracy of the company's invented device called Edison.
Theranos' CEO appeared on NBC's "Today" show on Monday and said that she wished she knew the problems ahead. She claimed she was devastated that her company didn't discover the faults earlier so they could have resolved things faster. Theranos's alleged partner, Walgreens Boots Alliance Inc. declined to comment on the matter.
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