Theranos Sued by Venture Capitalist for Misrepresentation
Theranos Inc. was sued by a venture capital investor over claims Chief Executive Officer Elizabeth Holmes lied about the company’s blood laboratory technology in which a pinprick of blood could be tested for hundreds of diseases.
The lawsuit, citing investigations by the U.S. Justice Department and the Securities and Exchange Commission, argues Holmes’s claims were overstated and the technology was flawed.
The lawsuit seeks class-action status representing investors in Theranos securities from July 29, 2013, to Oct. 2 of this year. The plaintiffs include Robert Colman, who purchased his shares through Menlo Park-based Lucas Venture Group XI LLC, according to the complaint.
Patrick Ryan, a spokesman for Theranos at Hill+Knowlton Strategies, didn’t immediately respond to a request seeking comment on the lawsuit.
