Theranos under investigation by SEC and U.S. Attorney’s Office: Bloomberg

Blood-testing firm Theranos Inc is under investigation by the U.S. Securities and Exchange Commission and the U.S. Attorney’s Office for the Northern District of California, Bloomberg reported.

U.S. federal health regulators have proposed banning Theranos founder Elizabeth Holmes from the blood-testing business for at least two years after determining that the company failed to fix deficiencies at its California laboratory, the Wall Street Journal reported last week.

Theranos could not immediately be reached for comment.

Theranos had promised to shake up medical testing by conducting a wide range of tests with just one drop of blood in a user-friendly manner with quick results.

The company has been in the spotlight after reports in the WSJ suggested that the blood-testing devices were flawed and had problems with accuracy.

(Reporting by Kshitiz Goliya in Bengaluru; Editing by Sandra Maler)

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