Theranos agrees to pay Arizona $4.65M for blood test reimbursements

Apr 18, 2017, 6:30 PM




PHOENIX — The blood-testing company Theranos has agreed to pay $4.65 million in consumer restitution in a decision reached with the Arizona Attorney General’s Office.

According to a press release, the state alleged Theranos’s advertisements violated the Arizona Consumer Fraud Act through misrepresenting the method, accuracy and reliability of its tests.

The company is also said to have been out of compliance with federal regulations.

Theranos reportedly sold about 1.5 million blood tests to more than 175,000 Arizonans between 2013 and 2015.

Ten percent of the tests that customers ordered have been voided or corrected, according to the company.

In addition to consumer restitution, the company will also pay for civil penalties, attorney fees and the cost to pay an administrator to oversee the reimbursement process.

“Everyone who paid for a test will receive a full refund, period,” Attorney General Mark Brnovich said in the release.

Under the agreement, the company will not be allowed to not own or operate any blood laboratory in Arizona for two years.

Any future violations of the agreement could lead to thousands of dollars in fines.

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Theranos agrees to pay Arizona $4.65M for blood test reimbursements