The Department of Justice and the Securities of Exchange Commissions have opened investigations of Theranos, a health technology and medical laboratory services company based in Palo Alto, Calif., after claims the company had misled investors and government officials, according to Medscape.
Here are four things to know:
1. The Walgreens Boots Alliance, which offers Theranos blood tests at 40 drugstores in Arizona, and the New York State Department of Health have received subpoenas requesting documents and testimony about what the laboratory company has communicated to them.
2. Theranos has recently come under fire from both the FDA and CMS, with the latter agency threatening to revoke the company's federal lab license and ban Elizabeth Holmes, founder and CEO of Theranos, from owning any other lab for at least two years on account of uncorrected deficiencies at its lab in Newark, Calif.
3. A CMS spokesperson said the agency has yet to impose the sanctions.
4. A series of Wall Street Journal articles dating back to October 2015 reported that Theranos performed the vast majority of its 200-plus blood tests using traditional off-the-shelf laboratory machines as opposed to its own proprietary machine called Edison.
