Theranos says it has been mischaracterized in allegations the company faked tests

Theranos secretly bought lab equipment through a husk firm, bullshitted testing and inappropriately pumped up the financial services outlook to investors, according to allegations in recently unsealed courtroom papers, first reported by the Wall Street Journal.

Partner Fund Management LP, a hedge fund conduct house which expended $96 million in Theranos filed the amount claimed in Delaware Chancery Court on Monday, which was unsealed Thursday afternoon, laying out exactly what it insists the once-hailed blood measuring firm had been doing to deceive the many investors, partners, customers and writers whod looked into the companys affairs.

In the filings, PFM alleges Theranos ranged phony demonstrations measures for prospective investors and business partners use business devices instead of its one-drop blood measuring technology.

The 66 -page complaint goes on to accuse founder Elizabeth Holmes and onetime chairperson and COO Ramesh Sunny Balwani of frequently and purposely lying, That, among other things, the company had developed a proprietary technology that worked; the companys proprietary technology was ready for business use to perform virtually all laboratory tests on a few drops of blood drawn from a patients paw; and the company was on the cusp of receiving all necessary regulatory permissions and approvals.

The allegations are based on the evidence of 22 onetime staff members of the company who were deposed by advocates of PFM and are part of a follow-up clothing to the one the house filed last October alleging Theranos had misledthe hedge fund where reference is convinced it to compute funds to the company coffers in 2014.

The brand-new filings are a follow-up to another clothing PFM filed earlier this month to stymie a deal Theranos had offered to investors to take equity, including some of founder Elizabeth Holmes sharesif they predicted not to sue.

PFM and two other investors now respond Theranos has been pressuring them to lower the clothing, recommending they should accept more equity or the company would seek Chapter 11 safety, according to Bloomberg.

Theranos responded to these allegations in a declaration on Monday, The suit is without deserve, the affirmations are baseless, and the plaintiff is engaging in revisionist history.

The company has since followed up further calling the document a one-sided filing by one the states parties to prosecution and telling they just mischaracterizations it “d rather” litigate in courtroom than rivalry now.

Heres the full word from Theranos 😛 TAGEND

This is a one-sided filing by one the states parties to prosecution, and we will respond at the appropriate time in the appropriate forum.We disagree with much of what PFM alleges in its complaint.This is not, however, the time or plaza to contest their mischaracterizations of the record.We will litigate this case in courtroom, where it belongs.What we will say now is that the items on which PFM center have nothing to do with why PFM expended, andtheyamount to a repackaging of allegations the media have already reported for nearly two years.

As for the tender offer: As previously disclosed, Theranos is in the midst of a tender offer committing its most significant shareholders. Elizabeth Holmes operation of her own shares to recapitalize our C-2 and C-1 investorsand thereby avoid dilution to our other shareholdersis consistent with her longstanding, personal is committed to doing the right thing for the Theranos shareholder base.This tender offer has been in dialogue between Theranos and its shareholders since July 2016. To date, more than 99% of C-2 and C-1 investors other than PFM have chosen to participate.

PFM, a multi-billion dollar hedge fund, opposed to this transaction, and is questioning the Court to stop the tender offer because it is unfair precisely and merely to PFM. In have responded to PFMs suit, the Court shelved the tender offering for a few months in order to allow sufficient time for the court considering the transaction.PFMseffort to enjoin the tender offeris meritless; their legal possibilities are self-serving and would harm the rest of the Theranos shareholders.The Company is energetically defending PFMs brand-new clothing and looks forward to to finish the transaction with its shareholders.

Read more: https :// techcrunch.com/ 2017/04/ 21/ theranos-says-it-has-been-mischaractarized-in-allegations-the-company-faked-tests-and-boosted-financials /