Theranos is facing a criminal investigation for reportedly misleading investors

Theranos criminal investigation 2016

Theranos, the troubled blood testing startup, is facing a criminal investigation into whether it misled investors.

The startup which is valued at $9 billion, has come under fire after reports found irregularities with its tests.

The company is currently under a criminal problem and a civil from from the SEC, according to several reports from The Wall Street Journal.

In recent weeks both Theranos partner Walgreens and the New York State Department of Health have received subpoenas. Those requests were issued to seek documents and other information about the representations that Theranos made, according to the WSJ.

Bloomberg also reports that the US Attorney’s Office for the Northern District of California is leading one of the probes.

It’s been a touch 7 months for Theranos which first started to come unraveled in October 2015 when The Wall Street Journal questioned the accuracy of the company’s tests.

The current criminal investigation is still in its early stages with subpoenas being issued to determine if prosecutors can move forward with an indictment.

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Written by John Howard

John Howard

John Howard is the Business Editor at BusinessPundit.com. He is an avid watcher of markets, a wallflower of retail, and a fan of disruptive businesses that utilize technology and unique ideas to form brilliant new ways of doing business. He can be reached at College Reviews.