Since a Wall Street Journal bombshell exposé last October, the blood-testing start-up Theranos has only been subjected to more scrutiny. As of last month, it is under investigation by the Securities and Exchange Commission. Now, the company has been hit with a class-action lawsuit.
According to Fortune, an Arizona man filed the lawsuit Wednesday in California, accusing Theranos of consumer fraud by falsely advertising to consumers its diagnostic testing technology, Edison. The Wall Street Journal reported Walgreens did not verify whether or not the technology actually functioned before the pharmaceutical firm inked a deal with the diagnostic start-up in 2013 that entailed opening Theranos testing clinics in dozens of Walgreens franchises.
There are 40 Walgreens stores in Arizona which consist of Theranos wellness centers. These wellness centers were closed in California last January in light of an alarming regulatory inspection report.
The lawsuit accuses Theranos of voiding blood tests. “Tens of thousands of patients may have been given incorrect blood-test results, been subject to unnecessary or potentially harmful treatments,” according to the class-action suit.
Another suit, also filed Thursday in California states Theranos breached its contract with the plaintiff by “providing tests that were not of the promised high level of accuracy and quality” and for “conducting tests using traditional blood testing methodologies and equipment instead [of] its self-proclaimed minimally invasive state-of-the art proprietary system.”
Theranos spokesperson Brooke Buchanan told The Verge the start-up plans to fight the class-action suit. “The lawsuit filed today against Theranos is without merit. The company will vigorously defend itself against these claims,” she said.