• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Surging Treasury yields expose a brutal truth: America has no margin for error on its $39 trillion debt

2

As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens

3

Current price of oil as of May 29, 2026

1

Surging Treasury yields expose a brutal truth: America has no margin for error on its $39 trillion debt

2

As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens

3

Current price of oil as of May 29, 2026
LeadershipTheranos

Theranos Is Now Facing a Class Action Lawsuit Accusing It of Consumer Fraud

Claire Zillman
By
Claire Zillman
Claire Zillman
Editor, Leadership
Down Arrow Button Icon
Claire Zillman
By
Claire Zillman
Claire Zillman
Editor, Leadership
Down Arrow Button Icon
May 26, 2016, 6:22 AM ET
Key Speakers At 2015 The Fortune Global Forum
Photograph by Bloomberg Bloomberg via Getty Images

A common refrain came true again Wednesday: the problems at Theranos have gotten even worse.

The embattled blood-testing startup that’s facing intense regulatory scrutiny is now the subject of a consumer fraud class action lawsuit.

A plaintiff identified only as M.P.B., who’s an Arizona resident, filed the lawsuit in the Northern District of California on Wednesday accusing Theranos of fraud since its proprietary technology—a device advertised as capable of conducting hundreds of blood tests with just a few drops of blood—did not work and produced inaccurate results.

“Theranos assured its customers that these tests were highly accurate, industry leading in quality, and developed and validated under, and compliant with, federal guidelines,” the complaint says. “Thousands of people, including Plaintiff M.P.B., believed the Company’s representations and paid for Theranos’s tests.” Theranos sold its blood tests at Wellness Centers at Walgreens (WAG) Pharmacies.

It became evident that the testing machine, known as Edison, did not work and that Theranos’s tests were not accurate on May 19 when Theranos conceded that it had told regulators that it had voided blood-testing results from Edison, according to the lawsuit. “As a result, tens of thousands of patients may have been given incorrect blood-test results, been subject to unnecessary or potentially harmful treatments, and/or been denied the opportunity to seek treatment for a treatable condition,” it claims. The complaint is seeking damages that include reimbursement of the tests’ purchase price, and it wants Theranos banned from “engaging in further deceptive advertisements.”

Theranos spokeswoman Brooke Buchanan told Fortune that the lawsuit is without merit. “The company will vigorously defend itself against these claims,” she said.

Theranos’s disclosure earlier this month that it had voided two years of results from its Edison blood-testing devices added to the growing consensus that the onetime health technology darling is not all it was cracked up to be. Those allegations began to build in October 2015 when The Wall Street Journal published a damning report that the startup wasn’t actually using its much-touted Edison technology to carry out most of its tests.

Then in March, the Journal reported on findings by the U.S. Centers for Medicare and Medicaid Services (CMS) that a Theranos laboratory in California employed under-qualified personnel and was failing to implement quality safeguards for a number of tests, which posed an “immediate jeopardy” to patient health.

The CMS threatened to revoke the company’s federal license for its California lab and ban CEO Elizabeth Holmes and president Ramesh “Sunny” Balwani, who left the company earlier this month, from the industry for at least two years. Federal prosecutors and the Securities and Exchange Commission are also probing the company, reportedly looking for possible misleading statements to investors or regulators about its technology or operations.

The complaint filed Wednesday claims that “at the very time that Theranos was advertising compliance with federal regulations, it had been repeatedly sanctioned by federal authorities.” The lawsuit says that Theranos performed approximately 6.1 million tests and that there could be thousands of members in its potential class.

This story has been updated to reflect a comment from Theranos.

About the Author
Claire Zillman
By Claire ZillmanEditor, Leadership
LinkedIn iconTwitter icon

Claire Zillman is a senior editor at Fortune, overseeing leadership stories. 

See full bioRight Arrow Button Icon

Latest in Leadership

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Leadership

Snowflake CEO says monster quarter shows why software firms need new pricing models to thrive in AI age
AISnowflake Computing
Snowflake CEO says monster quarter shows why software firms need new pricing models to thrive in AI age
By Sebastian HerreraMay 30, 2026
9 hours ago
Warren Buffett’s son Peter didn’t know his dad was a billionaire until his 20s—he found out from a rich list
SuccessWarren Buffett
Warren Buffett’s son Peter didn’t know his dad was a billionaire until his 20s—he found out from a rich list
By Sydney LakeMay 30, 2026
10 hours ago
A woman in a dark blazer speaks in front of a table of people.
SuccessLeadership
‘Don’t be yourself’ in the workplace, actually, Columbia professor says. Here’s why authenticity is ‘overrated’
By Sasha RogelbergMay 30, 2026
11 hours ago
Former IHOP CEO Julia Stewart
SuccessJobs
Ex-Applebee’s exec was told she’d never be CEO—she bought the chain and fired her naysayer: ‘We don’t need two of us, so I’m gonna have to let you go’
By Emma BurleighMay 30, 2026
11 hours ago
Ex–Google CEO Eric Schmidt warns U.S. tech workers: Competing with China’s grueling 12-hour workdays means sacrificing work-life balance
Future of Workthe future of work
Ex–Google CEO Eric Schmidt warns U.S. tech workers: Competing with China’s grueling 12-hour workdays means sacrificing work-life balance
By Marco Quiroz-GutierrezMay 30, 2026
11 hours ago
guitar
AIMusic
AI is splitting the music world. This 49-year-old guitarist used it to keep playing after Parkinson’s
By Mustakim Hasnath and The Associated PressMay 30, 2026
11 hours ago

Most Popular

Surging Treasury yields expose a brutal truth: America has no margin for error on its $39 trillion debt
Economy
Surging Treasury yields expose a brutal truth: America has no margin for error on its $39 trillion debt
By Shawn TullyMay 30, 2026
19 hours ago
As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens
Magazine
As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens
By Emma HinchliffeMay 27, 2026
4 days ago
Current price of oil as of May 29, 2026
Personal Finance
Current price of oil as of May 29, 2026
By Joseph HostetlerMay 29, 2026
2 days ago
Gen Z is rejecting $200 dates and choosing 'solo-maxxing'—and dating apps are taking a hit
Economy
Gen Z is rejecting $200 dates and choosing 'solo-maxxing'—and dating apps are taking a hit
By Sydney LakeMay 30, 2026
16 hours ago
As AI slashes white-collar jobs, Salesforce CEO Marc Benioff says almost no one is being hired—except in sales
Success
As AI slashes white-collar jobs, Salesforce CEO Marc Benioff says almost no one is being hired—except in sales
By Emma BurleighMay 28, 2026
2 days ago
A billionaire and an A-list actor found refuge in a 37-home Florida neighborhood with armed guards—proof that privacy is now the ultimate luxury
Real Estate
A billionaire and an A-list actor found refuge in a 37-home Florida neighborhood with armed guards—proof that privacy is now the ultimate luxury
By Marco Quiroz-GutierrezMay 25, 2026
6 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.