Theranos4.64M reaches settlement with Arizona Attorney General

>Theranos4.64M reaches settlement with Arizona Attorney General…

More than 175,000 Arizona residents who received blood tests from the laboratory company will receive full refunds, according to a settlement between Theranos Inc. Compensation will reach $4.65 million

Theranos founder Elizabeth Holmes Photo source: BRENDAN MCDERMID/REUTERS

CHRISTOPHER WEAVER

More than 175,000 Arizona residents who received blood tests from the laboratory company will receive full refunds under a settlement agreement between Theranos Inc. and the Arizona Attorney General.

The agreement requires Theranos to pay $4.65 million into a state sinking fund, resolving yet another legal challenge by the troubled Silicon Valley company. Theranos will also pay a $200,000 civil penalty and $25,000 in state legal fees. The company has not admitted wrongdoing.

The above-mentioned agreement is the second settlement reached in two days surrounding allegations that Theranos' blood testing technology or laboratory operations were defective. The company reached a regulatory and legal settlement with federal health regulators on Monday, with founder Elizabeth Holmes and the company agreeing to suspend medical experimentation for two years.

Theranos also faces a series of legal challenges, including criminal and civil investigations into whether it misled investors. Theranos' former retail partner, drugstore giant Walgreens Co. and other investors also filed lawsuits against the company.