uBiome Has a Leadership Problem Amid FBI Woes

Happy Monday, readers!

The Wall Street Journaland Business Insider report that uBiome, a lab testing and gut science startup that’s brushed up against FBI investigations over alleged billing shenanigans, is grappling with yet another set of executive shakeups.

John Rakow, the company’s general counsel who’s served as interim CEO for all of two months, is reportedly leaving the company. He will be replaced by three directors who will oversee operations, according to FierceBiotech; company founders and former co-CEOs Jessica Richman and Zac Apte, who were relegated to board positions following the initial FBI raid firestorm, will also reportedly resign from the board.

An FBI raid earlier this year led to increased scrutiny of uBiome by insurers and other regulators—including massive organizations like Anthem, Aetna, and the California Department of Insurance. The allegations include charges of fraudulent billing and potentially troubling relationships between the company and the physicians who ordered its tests.

uBiome, for its part, has initiated internal investigations into those allegations (the very investigations leading to the recent leadership shakeups). For now, its interim leadership will consist of a trio from the consulting firm Goldin Associates.

Read on for the day’s news.

Sy Mukherjee

@the_sy_guy

sayak.mukherjee@fortune.com

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