Partner Fund Management LP, a San Francisco-based hedge fund, filed the suit in Delaware Court of Chancery Monday afternoon against Theranos and its founder for allegedly lying to attract its nearly $100 million investment.
“Through a series of lies, material misstatements, and omissions, the defendants engaged in securities fraud and other violations by fraudulently inducing PFM to invest and maintain its investment in the company,” says the letter, which was reviewed by The Wall Street Journal.
The letter says Theranos, its founder Elizabeth Holmes and a former executive deceived the hedge fund by claiming it had developed “proprietary technologies that worked,” and was close to getting regulatory approvals.
Among the board members of Theranos were:
George P. Shultz-Former Secretary of Treasury and the State Dept.
Richard Kovacevich- who served as the Chief Executive Officer of Wells Fargo & Company from 1998–2007 and Chairman of the Board from 2001-2009.
William Perry- Former Secretary of Defense
Riley P. Bechtel-Chairman of the Board and a Director of Bechtel Group, Inc
Bill Frist-, former U.S. Senate Majority Leader
Samuel Nunn- who served as a United States Senator from Georgia for twenty-four years and as Chairman of the Senate Armed Services Committee
Partner made a $96.1 million investment in Theranos on Feb. 4, 2014, according to The Journal.
I called the firm creepy in July 2014 and started receiving in 2015 tips from senior researchers that test results out of Theranos were very suspicious.
Since then, Theranos has voided tens of thousands of test results, faces federal civil and criminal investigations, and is appealing a regulator’s revocation of its blood-testing license at a California lab.
The regulator barred Holmes from the lab industry, pending the company’s appeal.
And that's what you get for getting in bed with the war criminal Kissinger.