Palo Alto, Calif.-based Theranos has experienced major setbacks recently, and the blood-testing startup's regulatory and technological troubles threaten the $900 million in capital invested in the company, according to The Wall Street Journal.
When its valuation was soaring, Theranos received funding from many high-profile investors, including Walgreens and Rupert Murdoch, who poured about $100 million into the company, according to the report.
Those investments are threatened by Theranos' recent troubles. Over the past year, the company lost partnerships with Walgreens and Safeway, recalled tens of thousands of blood tests and was slapped with an investigation by the Department of Justice and another by the Securities and Exchange Commision.
In July, CMS banned Theranos Founder and CEO Elizabeth Holmes from owning and operating medical laboratories for at least two years. In October, the company closed its blood-testing facilities, according to The Wall Street Journal.
Theranos also faces multiple lawsuits, including one that alleges a faulty blood test led to patient harm. Theranos investors have filed three lawsuits against the company since Oct. 10, the most recent of which was filed Monday in federal court in San Francisco.
Theranos investors, many of whom claim they were provided with few details about how Theranos spent their money, may see their stakes wiped out as the company's troubles deepen, according to the report.
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