NEW YORK (360Dx) – Theranos said on Monday that it has reached a settlement agreement on two lawsuits brought against the firm by hedge fund Partner Fund Management, which had accused Theranos of lying to it in order to attract investments.
Ther terms of the settlement were not disclosed, but PFM will dismiss all claims against Theranos and its officers and directors, Theranos said in a statement.
PFM had invested $96.1 million in Theranos in early 2014, but last October, it sued Theranos, alleging the blood testing firm deceived it into investing into the company.
According to a letter obtained by The Wall Street Journal in the fall, PFM said that Theranos Founder Elizabeth Holmes and a former executive lied to the hedge fund, saying it had developed "proprietary technologies that worked," and that it was close to getting regulatory approvals for its technology.
"Although we are confident that we would have prevailed at trial, resolution of these two cases allow our tender offer to go forward and enables us to return our focus where it belongs, which is on executing our business plan and delivering value for our shareholders," Theranos General Counsel David Taylor said.
The firm is in the midst of a tender offer involving "its most significant shareholders." Through the offer, about 99 percent of the firm's shares subject to the tender have committed to participate ahead of the of the expected May 15 close, Theranos said.
Last month, the company reached a deal with the Centers for Medicare & Medicaid Service to settle all outstanding legal and regulatory proceedings against Theranos. Separately, it also reached an agreement with the Arizona attorney general's office to reimburse state residents $4.65 million for blood testing services it had performed.