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The company that promised it could, but then couldn't, Theranos has agreed to pay out over $4.5 million to settle the Arizona class action case against it. The settlement resolves the consumer protection and fraud claims against the blood testing company brought by Arizona.
The settlement will provide each individual who used Theranos in Arizona between 2013-2016 with a full refund. With 175,000 class members, the average breaks down to around $25 per person. In addition to the monetary relief for consumers, a $25,000 attorney fee award was secured, as well as an agreement for Theranos to cease operation in Arizona for two years.
Who Is Theranos?
Theranos was founded a few years back and promised to revolution the medical blood testing industry. The company promised to do so by creating methods to perform multiple blood tests on a single drop of blood. Despite their best efforts however, the company was unable to provide reliable or accurate results.
However, before it became clear that Theranos would never be able to deliver on their promise of futuristic blood testing in the present day, major corporations, including Walgreens, had signed deals with the company.
What's Theranos Doing Now?
One thing the company isn't doing much of these days is trying to test blood. The company has taken a shift towards being research oriented rather than service oriented. Theranos is still facing serious litigation in other states over their claims that never materialized. Companies that signed deals or invested money are scrambling to recover their investments. Meanwhile, Theranos has requested that investors stop pursuing legal action, and settle for increased equity stakes
Basically, it sounds like Theranos is trying to trade their presidential estate cabin on a sinking ship for a single seat on the life boat. While the company has offered investors more equity to end the litigation, they have also threatened to declare bankruptcy, which would essentially stall the investors' litigation, if not end basically end it.