January 12, 2017 / 5:19 PM / 6 months ago

Arizona AG plans to sue Theranos over blood-testing devices

2 Min Read

(Reuters) - The Arizona Attorney General plans to file a lawsuit against Theranos Inc over a "long-running scheme of deceptive acts and misrepresentations" related to the company's blood-testing equipment, according to a state bidding document.

The Attorney General's office is seeking outside counsel in commencing legal action against Theranos and its closely related units for violations of the Arizona Consumer Fraud Act, according to the document.

Theranos declined to comment.

The planned lawsuit is the latest against Theranos, which had promised quicker results using just one drop of blood.

But concerns over the devices rose after the Wall Street Journal published a series of articles, starting October 2015, that suggested the devices were flawed and inaccurate.

Theranos, founded by Elizabeth Holmes in 2003, said last year it would close its clinical labs and Wellness Centers, including those in Arizona and Pennsylvania.

Walgreens Boots Alliance Inc sued Theranos in November, months after the largest U.S. drugstore chain by stores terminated its relationship with the company.

Theranos, which is also facing a class action lawsuit, is also being investigated by other federal and state agencies, including the U.S. Securities and Exchange Commission.

Arizona's planned lawsuit would seek civil penalties and potential injunctive relief, among other things.

The document was posted on the Arizona government's public procurement website on Jan. 4. bit.ly/2jnBPKJ

Theranos is currently working towards commercialization of its "minilab" product, which can run a broad range of tests on a single desktop machine.

Reporting by Ankur Banerjee and Subrat Patnaik in Bengaluru

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