The Arizona Attorney General's office is planning to sue Theranos, as 360Dx has reported.
In a public solicitation seeking the help of outside council, the Attorney General's office alleges that the blood-testing firm conducted a "long-running scheme of deceptive acts" that harmed state residents and that it misrepresented "the capabilities and operation of Theranos blood testing equipment."
As the Wall Street Journal notes, Theranos ran 40 blood-testing centers in Walgreens stores in the Phoenix area.
Theranos has been dealing with the aftermath of a series of articles in the Journal that called into question whether the company used its own blood testing technology and whether its proficiency testing was up to snuff as well as an inspection by regulators that uncovered a number of deficiencies, including one that they said posed "immediate jeopardy to patient health and safety." Regulators have proposed banning CEO Elizabeth Holmes from owning or operating a clinical lab, though the Journal notes the company is appealing that action. Walgreens is also suing Theranos, and has said that the firm has voided 11 percent of the blood tests it conducted for Walgreens customers.
The firm has been trying to remake itself into a technology company. It laid off 155 people, or 41 percent of its staff, last week to focus on its miniLab testing technology, as 360Dx also reported.