Medical startup Theranos has reached a settlement with investor Partner Fund Management. Under the terms of the settlement, the hedge fund management fund will withdraw all claims against Theranos and its officers and directors.
Partner Fund Management had invested a total of $96.1 million in Theranos in 2014. Indeed, the investment was part of a slew of investments that had seen Theranos acquire a valuation n excess of $9 Billion. Last year, the fund filed a lawsuit against Theranos in which it claimed that the company had gotten it into investing through:
A series of lies, material misstatements, and omissions.
In a separate lawsuit, PFM accused Theranos of engaging in:
securities fraud and other violations by fraudulently inducing PFM to invest and maintain its investment in the company.
Serious allegations all. Theranos had fired back at the investment fund stating that all of these allegations were without any merit at all.
The terms of the settlement are unknown. Although, it would be reasonable to assume that Partner Fund Management would have attempted to recuperate as much of its investment from Theranos as possible. The company has been attempting to reach settlements with various stakeholders and had offered Elizabeth Holmes’ shares to other investors on the condition that they did not sue the company.
Speaking about the settlement, Theranos General Counsel David Taylor said:
Theranos is pleased to have resolved both lawsuits with PFM. Although we are confident that we would have prevailed at trial, resolution of these two cases allows our tender offer to go forward and enables us to return our focus where it belongs, which is on executing our business plans and delivering value for our shareholders.
