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Theranos' financial troubles are starting to pile up
Theranos has been having an awful time of it lately, mostly of its own making, with several lawsuits in place, including ones from Walgreens and hedge-fund Partner Fund Management (PFM). The company that promised investors a revolutionary blood-testing technique and custom analysis machinery has just settled the latter suit for an undisclosed sum. The original lawsuit sought recovery of a $96.1 million investment plus damages. A particularly large settlement could have a significant impact on the beleaguered company, of course, which told investors that it only had $200 million in cash as of the end of last year. The Wall Street Journal reports that Theranos has already spent $5 million on other recent settlements.
Theranos faces lawsuit from a major investor
When Theranos founder Elizabeth Holmes announced that the company was shifting its focus, she said her team is lucky to have investors who believe in its mission. But there's at least one major investor who doesn't, and it has already sued the controversial blood-testing provider. According to The Wall Street Journal, Partner Fund Management (PFM) LP is accusing the startup of convincing it to pour $100 million into the startup by feeding it a "series of lies." The San Francisco-based hedge fund firm filed the lawsuit in Delaware today and sent out a letter to its own investors.
