As you know by now, things went awry after a series of Wall Street Journal reports came out in 2015, revealing that Theranos was conducting most of its tests using typical lab practices and equipment instead of its proprietary machine. If you'll recall, the company said its machine can produce test results from a single drop of blood -- a service people could avail through Walgreens' outlets. Because ordinary lab equipment requires more blood than that, the accuracy of Theranos' blood test results were called into question. Since then, Walgreens severed its ties with the company, Holmes was banned from running a lab for a couple of years and Theranos had to let most of its employees go. One of the two plaintiffs in this lawsuit is well-known Silicon Valley investment banker Robert Colman. He invested in the company when it announced its partnership with Walgreens back in 2013. The second plaintiff, Hilary Taubman-Dye, was a victim of bad timing. She bought shares through online exchange platform SharesPost Inc. in August 2015, a couple of months before WSJ's exposé was published. According to the publication, she tried to cancel the transaction after the scandal broke. Unfortunately, that didn't work out, and her transaction went through in December. The Hagens Berman Sobol Shapiro law firm is going all out with this case. It's currently looking for more investors to join the class-action lawsuit and even whistleblowers who can provide information to help with its investigation.
Two investors have filed class - action lawsuits against Theranos , accusing founder Elizabeth Holmes and former president Ramesh Gupta of making false promises " built on false statements and omissions " and falsely claiming their " revolutionary technology " had been vetted by experts and regulators to raise more investment . High - profile Silicon Valley investment banker Robert Colman and Hilary Smith - Dye have engaged with Berman Sobol Shapiro law firm , which is seeking additional investors and whistleblowers to provide more transparency with its investigation . Walgreens and GE Fund Management sued Theranos for $ 140 in early November .