ARIZONA NEWS

Report: Arizona prepares to sue blood-testing company Theranos for fraud

Jan 14, 2017, 9:15 AM | Updated: Jan 15, 2017, 7:59 pm
(Twitter Photo)...
(Twitter Photo)
(Twitter Photo)

PHOENIX — Arizona is making steps to sue the blood-testing company Theranos Inc. for fraud, which could make it the first government agency to do so, The Wall Street Journal reported.

Theranos is a private health care company that came under hot water in 2015 after it was discovered that the company’s technology was producing inaccurate test results.

According to a document obtained by The Journal, Arizona Attorney General Mark Brnovich is seeking outside counsel to aid in the legal action against Theranos for violating the Arizona Consumer Fraud Act.

The document claimed that Arizona is pursuing legal action against Theranos for its “long-running scheme of deceptive acts and misrepresentations…made to Arizona consumers” relating to the blood-testing equipment.

A spokeswoman for Brnovich told The Journal that they could not comment on “any potential ongoing consumer-fraud investigations” and representatives for Theranos declined to comment.

Arizona would be the first government entity to sue the blood-testing company if the action moves forward. Theranos is also facing a high-profile lawsuit from Walgreens, which partnered with Theranos in 2013 to offer in-store blood tests at multiple locations.

Theranos had a blood testing center in Scottsdale and in October 2015, the Arizona Department of Health Services reported that the lab had trouble meeting regulations. The lab shut down nearly a year later.

The company had a large influence on Arizona legislation and received lots of support from state lawmakers.

Theranos’ founder Elizabeth Holmes personally lobbied the Arizona Legislature and Gov. Doug Ducey. In 2015, Ducey signed a bill — at the Scottsdale lab — that allowed people to get a blood test without a doctor’s order.

The Wall Street Journal first reported on the company’s failures in October 2015, unveiling that Theranos used traditional blood testing machines to run its test as opposed to the company’s Edison machines, which occasionally produced false results.

By January 2017, Theranos had laid off nearly half of its staff and closed most of its operations. The company will now focus on miniature testing machines, Holmes said.

Lifetime Windows & Doors

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

Kathleen Patterson (Maricopa County Sheriff's Office and Facebook/Spur Cross Ranch Conservation Are...
KTAR.com

Missing hiker found dead at Spur Cross Ranch in Cave Creek

A Valley woman who went missing over the weekend was found dead in the Spur Cross Ranch Conservation Area on Wednesday morning, authorities said.
13 hours ago
Republican U.S. senatorial candidate Blake Masters speaks at a campaign event in Phoenix on Aug. 1,...
Kevin Stone

Blake Masters thinks independents will back him over Sen. Mark Kelly

Blake Masters, the Republican nominee for U.S. Senate in Arizona, said Wednesday he thinks the key independent bloc will support him in his effort to unseat Sen. Mark Kelly despite recent polling showing otherwise.
13 hours ago
(Pixabay Photo)...
KTAR.com

Authorities investigate fatal boating accident on Colorado River in Arizona

Authorities are investigating the death of a California man in an apparent boating accident on the Colorado River in northwestern Arizona.
13 hours ago
FILE - Arizona Corporation Commission Chairman Bob Burns smiles during a meeting, Thursday, June 20...
Associated Press

High court says lone Arizona regulator can seek utility records

The Arizona commission that regulates utilities cannot prevent a single member from issuing subpoenas to investigate companies that the panel oversees, the state Supreme Court ruled Tuesday.
13 hours ago
(Apache Junction Police Department photo)...
KTAR.com

Suspect in fatal shooting in Apache Junction turns himself over to police

A young man suspected of fatally shooting his brother in Apache Junction has turned himself over to authorities.
13 hours ago
(AP Photo/Rick Bowmer, File)...
Luke Forstner

Sheriffs suggest ways to tackle drugs and addiction in Arizona

With big fentanyl busts in the news and numbers up in Arizona, experts are talking about the best ways to address addiction.
13 hours ago

Sponsored Articles

...
Quantum Fiber

How high-speed fiber internet can improve everyday life

Quantum Fiber supplies unlimited data with speeds up to 940 mbps, enough to share 4K videos with coworkers 20 times faster than a cable.
...
Children’s Cancer Network

Children’s Cancer Network celebrates cancer-fighting superheroes, raises funds during September’s Childhood Cancer Awareness Month

Jace Hyduchak was like most other kids in his kindergarten class: He loved to play basketball, dress up like his favorite superheroes and jump as high as his pint-sized body would take him on his backyard trampoline.
...
SCHWARTZ LASER EYE CENTER

Key dates for Arizona sports fans to look forward to this fall

Fall brings new beginnings in different ways for Arizona’s professional sports teams like the Cardinals and Coyotes.
Report: Arizona prepares to sue blood-testing company Theranos for fraud