The Arizona Attorney General's Office is seeking an outside legal firm to help it prepare a consumer fraud lawsuit against Palo Alto, Calif.-based Theranos, STAT reported.
The Arizona AGO filed a request for proposals on Jan. 4 to find a law firm to represent the state of Arizona in the potential lawsuit and to help build a case against the blood testing startup. The AGO believes Theranos may have violated the Arizona Consumer Fraud Act in its "long-running scheme of deceptive acts and misrepresentations relating to the capabilities and operation of Theranos blood testing equipment," it wrote in the RFP.
Since The Wall Street Journal published a pair of investigative reports in October 2015 questioning Theranos' claims and operations, the company has faced considerable scrutiny by the media, federal regulators and consumers. For example, last year a CMS investigation found a number of deficiencies at the company's Newark, Calif.-based lab, and the lab's certification was ultimately revoked. Founder and CEO Elizabeth Holmes was also banned from owning or operating a medical laboratory for at least two years. Theranos operated 40 blood-draw sites in Arizona, which were closed last June when Walgreens terminated its partnership with the startup.
Theranos now faces a number of lawsuits, including one from Walgreens and several consumer lawsuits. The Arizona AGO lawsuit, however, would be the first government-led lawsuit against Theranos, as noted by STAT.
The AGO is seeking civil penalties, disgorgement, attorney's fees and consumer restitution, according to the RFP. Bids are due Jan. 27.
Becker's reached out to Theranos for comment. This article will be updated accordingly.
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