Action against Defendants, a medical device manufacturer, its founder and CEO, and its former President, for allegedly raising more than $700 million from investors on the basis of false or misleading claims.  The SEC alleges that Defendants misrepresented the effectiveness of their key product, a portable blood analyzer, and made misrepresentations to potential investors regarding a contract with the Department of Defense.  Defendant Holmes has agreed to pay a $500,000 penalty, to be barred from serving as an officer or director of a public company for 10 years, to return 18.9 million Theranos shares, and to relinquish her voting control of Theranos.  Defendant Balwani contests the SEC’s charges.

SEC Litigation Release

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