Investors vs. Theranos

Walgreens and Theranos reach a settlement, which dismisses Walgreens' breach-of-contract lawsuit without "a finding or implication" of liability for Theranos.

Theranos confirms that options "for all or portions of" the company's 116,000-square-foot Palo Alto headquarters are being made available for sublease to other tenants.

The Wall Street Journal reports Theranos has $54 million left in cash but is spending $10 million per month in legal fees.

May 1, 2017. Theranos announces resolution of two lawsuits brought by PFM (Partner Fund Management, LP), a San Francisco hedge fund. Terms were not disclosed.

A "public version" of the October 2016 Partner Fund Management (PFM) lawsuit against Theranos is filed in Delaware Court of Chancery. Among the allegations: Theranos set up a wholly-owned subsidiary called Protegic to procure conventional blood-testing analyzers in secret, and that the company's use of these devices was concealed.

Theranos settles the Arizona attorney general's consumer fraud suit, agreeing to refund $4,650,000 to 175,000 Arizona customers who paid for blood tests at Theranos's Walgreens Wellness Centers, plus an additional $225,000 in attorneys' fees and civil penalties.

Theranos announces an agreement with the Centers for Medicare & Medicaid Services (CMS) that resolves existing legal proceedings and regulatory sanctions against the company. This will include restoration of Theranos's CLIA operating certificates and reduction of fines to $30,000, but prevent the company from owning or operating a clinical laboratory for two years.

The Wall Street Journal reports Elizabeth Holmes may owe Theranos around $25 million for options she exercised without payment but with the company's consent. The company has the right to cancel either the debt or the shares.

The Wall Street Journal reported a proposed deal with Theranos shareholders whereby Elizabeth Holmes offers to give up her majority stake if investors agree not to sue the company.

News Corp owner Rupert Murdoch has sold his $125 million stake back to Theranos for one dollar, according to the Wall Street Journal, which also reported Theranos's offer to increase late-stage investors shares in return for a promise not to sue.

The Wall Street Journal reports that Theranos had $200 million in cash remaining at year-end 2016, and no "material revenue" in 2015 or 2016.

The Wall Street Journal reports that in September, 2016, Theranos's Scottsdale, Arizona lab failed a test by the Centers for Medicare and Medicaid Services (CMS) – but that the company failed to divulge the news to investors or patients.

Theranos announces an eight-member technology advisory board, heavy on bioengineering backgrounds; Channing Robertson, advisor to Elizabeth Holmes since her college days, is co-chair.

Bloomberg reports Theranos will reduce its workforce by 155 people (approximately 41% of total), leaving just 220 workers.

Arizona's Attorney General issues RFP disclosing intent to sue Theranos for violating the Arizona Consumer Fraud Act.

Investor class action filed in U.S. District Court of Northern California against Theranos, Elizabeth Holmes, and Ramesh "Sunny" Balwani for violation of California securities laws, unfair competition laws, and common laws.

Walgreens sues Theranos in federal court for breach of contract, demands a $140 million settlement.

Theranos responds to the PFM suit, saying that it is "without merit" and claiming that most of the Theranos statements cited as misleading inducements to invest, were made after the plaintiff had already invested.

PFM, a hedge fund and major Theranos investor, sues the company over alleged securities fraud.

Elizabeth Holmes announces closure of lab operations and Wellness Centers in Arizona, California, and Pennsylvania and the loss of 340 employees. The open letter to stakeholders promises "undivided attention" to the new miniLab.

Theranos announces it has filed an "intent to appeal" the sanctions imposed by the Centers for Medicare and Medicaid Services (CMS) that prohibited Holmes from owning, operating, or directing a lab for two years.

Elizabeth Holmes presents the prototype miniLab at the American Association for Clinical Chemistry's 68th Annual Scientific Meeting, pivoting from Edison and the past to future possibilities for the new miniLab.

The Centers for Medicare and Medicaid Services (CMS) follow through on their March 28 warning and bar Elizabeth Holmes and COO Sunny Balmani from owning or operating a laboratory for a minimum of two years. The company's Newark, California lab's certification is revoked.

Walgreens cuts off its relationship with Theranos, closing all 40 of its Wellness Center locations in Walgreens stores.

Theranos advises Walgreens that they had sent voided test results to 31,000 Walgreens customers.

Hollywood smells blood: it is reported that Jennifer Lawrence will play Elizabeth Holmes in an Adam McKay big-screen "biopic" of Theranos's rise and fall.

Forbes magazine downgrades its estimate of Elizabeth Holmes' net worth: from $4.5 billion in 2015 to "nothing."

Sunny Balwani, Theranos president and Chief Operating Officer, and Holmes's friend and associate since college days, departs the company.

Theranos announces to partners that it is under investigation by the Securities and Exchange Commission and the United States Attorney's Office for the Northern Disctrict of California.

Four months after questioning Theranos's lab practices, the Centers for Medicare and Medicaid Services (CMS) find that not all problems have been corrected.

The Centers for Medicare and Medicaid Services (CMS) send letter to Theranos warning that Elizabeth Holmes and COO Sunny Balwani will be banned from owning or operating a lab for two years if specified remedial steps are not taken.

Questions of patient safety are raised for the first time when the Centers for Medicare and Medicaid Services (CMS) release an opinion that patients of a Theranos lab were in "immediate jeopardy."

The Wall Street Journal reports supermarket chain Safeway Stores will abandon a $350 million deal with Theranos, based on concerns about missed deadlines and reports of test innacuracies.

The FDA releases two reports pointing to deficiencies in Theranos's procedures, including the shipping of an "uncleared medical device," the company's "Nanotainer," a miniature blood vial.

Theranos announces it is temporarily retiring its proprietary Nanotainer, the pin-prick blood-draw vial, following criticism by the U.S. Food and Drug Administration (FDA) revealed in the previous day's Wall Street Journal.

The first of John Carreyrou's reports questioning Theranos's technology is published in the Wall Street Journal.

The U.S. Food and Drug Administration grants Theranos a "CLIA waiver," allowing it to perform blood tests for herpes simplex virus at its Wellness Centers, rather than a dedicated clinical laboratory.

Theranos and Capital BlueCross of Pennsylviania announce a deal to make Theranos blood testing available in Captial BlueCross health and wellness stores and Theranos Wellness Centers in central Pennsylvania.

Theranos receives approval by the U.S. Food and Drug Administration (FDA) for a finger-prick test for a single diagnosis: herpes. The company puts its herpes tests on hiatus pending further approvals.

Forbes puts Elizabeth Holmes in the #1 position in its first list of "America's 50 Richest Self-Made Women, " based on the magazine's $9 billion estimate of Theranos's worth.

Theranos and Cleveland Clinic jointly announce a "strategic alliance" to pursue "the full potential of Theranos technology at Cleveland Clinic and across the broader healthcare system."

Elizabeth Holmes makes the Forbes 500 list of the world's richest people (#360, at $4.5 billion), based on 50% ownership of Theranos, valued by Forbes at $9 billion.

Holmes is said to own 18 US patents, and a total of 84 patents worldwide. Note: This is reported to be true as of some time during 2014; a specific date has not been identified.

Walgreens and Theranos revise their agreement to encompass development of stand-alone Theranos Wellness Centers to operate within Walgreens stores. Note: This is reported to have happened during the month of June; the specific day has not been identified.

Mystery new tenant of Newark, California, Pacific Research Center is reported to be Theranos, with plans to move manufacturing and headquarters to a new 220,000 square-foot facility.

Following most recent funding round, Theranos's valuation is said to be $1 billion. Note: This is reported to have happened during the second half of 2010; a specific day has not been identified.

Theranos reports raising $45 million in equity and option financing from a single unamed investor in a Securities and Exchange Commission filing. Total VC funding to date: $92 million.

Elizabeth Holmes makes an early public appearance as guest speaker at Stanford's Entrepreneurial Thought Leaders series, declaring her all-in commitment: “It became clear to me that, if I needed to, I would restart this company as many times as possible to make this thing happen."

Elizabeth Holmes receives her first patent for a device that can perform multiple tests simultaneously from a single drop of blood and deliver the data wirelessly to a doctor. Note: This is reported to have happened during the month of November; the specific day has not been identified.

November 13, 2006. Theranos files with the SEC for $28.5 million in Series-C financing; new investors include California venture capital firm Tako Ventures and Continental Properties (Texas).

A Series-B round nets Theranos another $9.9 million in venture funding, including participation by ATA Ventures, a Silicon Valley VC.

February 11, 2005. Theranos receives $5.8 milllion in Series-A funding. Silicon Valley venture capital firm Draper Fisher Jurvetson is an investor.

Theranos is incorporated. Note: This is reported to have happened during the month of April; the specific day has not been identified.

Elizabeth Holmes, age 19, drops out of her chemical engineering studies at Stanford University to start a venture she calls RealTime Cures. Note: This is reported to have happened during 2003; the specific date has not been identified.