Theranos is now facing another issue as the company has received a lawsuit alleging it to have committed consumer fraud over blood tests.
On May 26, the company was sued and accused of threatening the health of its clients through widespread failures that distort the accuracy and quality of its blood tests.
Law firm Hagens Berman Sobol Shapiro LLP was the one that submitted the pressed class action to the U.S. District Court for the Northern District of California.
According to the complaint, Theranos convinced its customers that their products were high-quality, accurate, and manufactured and verified under the guidelines set by the federal law. Many people believed this and availed of the company's tests. However, one of its machines, the Edison blood-testing device, did not work properly and the firm's test results were inaccurate.
The complaint emphasized the inacurracies in the marketing tools released by the company together with Walgreens Boots Alliance. The two companies had signed an agreement in which Walgreens would sell Theranos' blood-testing machines in approximately 40 of its Arizona and California stores.
Theranos answered these allegations, saying they were all without merit.
"The company will vigorously defend itself against these claims," it wrote in an email.
Focus On The Edison Device
Theranos' Edision device has been flagged as a breakthrough technology that has the ability to test blood by a simple pin prick procedure.
Just last week, Theranos has informed U.S. federal health regulators that it had cleared off the findings from its Edison device for two years, according to a Wall Street Journal report.
Theranos has also notified the Centers for Medicare and Medicaid Services (CMS) that it has released thousands of corrected blood test findings to clinicians and patients. In the revised reports, some of the results were either voided or revised.
Past Theranos Issues
This is not the first time Theranos has been in hot waters. In January, U.S. regulators said that Theranos laboratory practices pose immediate jeopardy to clients' health. During a routine inspection, CMS was able to discover that Theranos' Newark, California facility did not comply with the set standards required for certification.