{"id":339767,"date":"2017-05-02T03:04:25","date_gmt":"2017-05-01T19:04:25","guid":{"rendered":"http:\/\/techcrunch.com\/?p=1483778"},"modified":"2017-05-02T03:04:25","modified_gmt":"2017-05-01T19:04:25","slug":"theranos-reaches-settlement-with-investor-partner-fund-management","status":"publish","type":"post","link":"https:\/\/people.utm.my\/asmawisham\/theranos-reaches-settlement-with-investor-partner-fund-management\/","title":{"rendered":"Theranos reaches settlement with investor Partner Fund Management"},"content":{"rendered":"

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Beleaguered blood diagnostics startup Theranos has reached a settlement with hedge fund management firm Partner Fund Management.<\/p>\n

PFM invested $96.1 million in Theranos\u2019 Series C-2 round in 2014, helping to\u00a0pop the company up to a $9 billion valuation. However, the hedge fund opened a lawsuit against Theranos last year\u00a0saying the company had tricked it into investing \u201cthrough a series of lies, material misstatements, and omissions.\u201d PFM further accused Theranos in a separate lawsuit of engaging in \u201csecurities fraud and other violations by fraudulently inducing PFM to invest and maintain its investment in the company.\u201d<\/p>\n

Theranos was under regulatory scrutiny at the time. However, the company insisted the PFM lawsuit was \u201cwithout merit\u201d and that it would \u201cfight it vigorously.\u201d<\/p>\n

Terms of the settlement are confidential but PFM had sought to recoup its\u00a0investment in the case and was also asking for damages. Whatever the terms were, according to a Theranos company statement<\/a>, PFM will dismiss all claims against Theranos and its officers and directors.<\/p>\n

\u201cTheranos is pleased to have resolved both lawsuits with PFM. Although we are confident that we would have prevailed at trial, resolution of these two cases allows our tender offer to go forward and enables us to return our focus where it belongs, which is on executing our business plans and delivering value for our shareholders,\u201d said<\/a> Theranos General Counsel David Taylor.<\/p>\n

Theranos still faces numerous other lawsuits \u2014 including from former customers and one from previous partner Walgreens<\/a>, which is seeking $140 million from the company for breach of contract. Earlier this year, the\u00a0company began offering other investors founder Elizabeth Holmes\u2019 shares<\/a> if they would promise to not also sue the company.<\/p>\n

Holmes was previously barred from operating in her own labs and Theranos was forced to shut down it\u2019s California lab. The company has since shut down its remaining labs, laid off 41% of its workforce and refocused on a tabletop miniLab instead of its previous one drop blood testing technology.<\/p>\n

Despite these other hurdles, including the many cases Theranos may still have to contend with in court, the company says the settlement allows it to now go forward with plans to market its new miniLab product.<\/p>\n

But perhaps this and some other recent wins are enough to help the company turn things around? In April, Theranos was cleared by the Centers for Medicare & Medicaid Services (CMS) and also reached a\u00a0resolution with the Arizona Attorney General\u2019s office, which had also previously filed a claim<\/a> against the company.<\/p>\n","protected":false},"excerpt":{"rendered":"

\"\" Beleaguered blood diagnostics startup Theranos has reached a settlement with hedge fund management firm Partner Fund Management. PFM invested $96.1 million in Theranos’ Series C-2 round in 2014, helping to\u00a0pop the company up to a $9 billion valuation. However, the hedge fund opened a lawsuit against Theranos last year\u00a0saying the company had tricked it into investing “through a… Read More<\/a><\/p>\n

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\"\"\/ <\/p>\n","protected":false},"author":5817,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[25],"tags":[59,66,26],"class_list":["post-339767","post","type-post","status-publish","format-standard","hentry","category-technology","tag-media","tag-techcrunch","tag-technology"],"_links":{"self":[{"href":"https:\/\/people.utm.my\/asmawisham\/wp-json\/wp\/v2\/posts\/339767","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/people.utm.my\/asmawisham\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/people.utm.my\/asmawisham\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/people.utm.my\/asmawisham\/wp-json\/wp\/v2\/users\/5817"}],"replies":[{"embeddable":true,"href":"https:\/\/people.utm.my\/asmawisham\/wp-json\/wp\/v2\/comments?post=339767"}],"version-history":[{"count":0,"href":"https:\/\/people.utm.my\/asmawisham\/wp-json\/wp\/v2\/posts\/339767\/revisions"}],"wp:attachment":[{"href":"https:\/\/people.utm.my\/asmawisham\/wp-json\/wp\/v2\/media?parent=339767"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/people.utm.my\/asmawisham\/wp-json\/wp\/v2\/categories?post=339767"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/people.utm.my\/asmawisham\/wp-json\/wp\/v2\/tags?post=339767"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}