Theranos is the target of a lawsuit filed by a hedge fund that invested $96 million in the startup, per The Wall Street Journal. The Partner Fund Management suit alleges, among other things, that Theranos claimed its technology could do more tests than it was actually capable of and that it overstated its progress through different FDA approval processes, according to the report.
The company issued the following statement regarding the civil suit:
"A San Francisco hedge fund has filed a civil suit against the company over its investment. The suit is without merit, the assertions are baseless, and the plaintiff is engaging in revisionist history.
Most of the company statements the plaintiff has cited in its suit were made after the time the plaintiff invested, and could not possibly have been the original basis for investment. This wholesale reliance on post-investment statements, therefore, negates the claim that the plaintiff was misled."