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Arizona AG Plans to Sue Theranos

NEW YORK (360Dx) – The Arizona attorney general's office plans to sue Theranos and its subsidiaries for its "long-running scheme of deceptive acts and misrepresentations," it said in a public solicitation issued earlier this month.

In its request for proposal, the Arizona AG seeks outside counsel to help it as it pursues legal action against the beleaguered company, once a highflier in the life science and biotechnology space, which more recently has run into trouble with the US Food and Drug Administration and the Centers for Medicare and Medicaid Services.

Law firms interested in helping the Arizona AG have until Jan. 27 to submit bids.

In the solicitation, the Arizona AG pointed to alleged misrepresentations committed by Theranos related to "the capabilities and operation of Theranos blood testing equipment, including but not limited to deceptive acts and misrepresentations made to Arizona consumers in connection with Theranos Wellness Centers in Arizona and California."

The document notes actions taken by CMS during the summer after it found problems with Theranos and banned its CEO Elizabeth Holmes from owning or operating a clinical laboratory for two years.

More recently, the Palo Alto, California-based company offered a first look at its miniLab decentralized testing technology. In October, however, the firm laid off 340 people and closed its clinical labs and wellness centers. Last week, Theranos further trimmed its workforce by another 41 percent, laying off 155 workers.

On deadline, Theranos did not respond to a request for comment.