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Theranos Settles

Theranos has settled with both the Centers for Medicare & Medicaid Services and Arizona, as 360Dx has reported.

Theranos ran into trouble with CMS after inspections of it California lab uncovered "condition-level deficiencies" that posed "immediate jeopardy to patient health and safety." The agency then found that the firm's efforts to address the issues were lacking and proposed banning Theranos's CEO Elizabeth Holmes. The firm appealed that decision and has now settled. CMS later also uncovered problems at the firm's Arizona lab.

According to 360Dx, Theranos has agreed to not own or operate a clinical lab for the next two years. The firm recently shifted its focus away from clinical testing to technology development.

The firm likewise settled with Arizona, whose attorney general was seeking to sue the firm for harming residents. According to Stat News, Theranos is to refund Arizona residents some $4.7 million for blood tests they paid for between 2013 and 2016. It adds that the firm has also agreed not to operate a CLIA lab in Arizona for two years and to pay the attorney general's office $200,000 in civil penalties and $25,000 in legal fees.