The Theranos Story, ch. 33: Arizona gets its lawsuits on

click to enlargeThe state of Arizona is lawyering up to sue Theranos for consumer fraud. TechCrunch found a bid solicitation on Arizona’s state procurement website from the Office of the Arizona Attorney General (AGO). It requests bids for outside counsel to assist the AGO in legal action against Theranos for fraudulent blood testing. From the Outside Counsel RFP:

The purpose of this contract is to retain Outside Counsel to aid the Arizona Attorney General’s Office (the AGO) in commencing legal action against Theranos, Inc. and its closely related subsidiaries for violations of the Arizona Consumer Fraud Act arising out of Theranos Inc.’s long-running scheme of deceptive acts and misrepresentations relating to the capabilities and operation of Theranos blood testing equipment, including but not limited to deceptive acts and misrepresentations made to Arizona consumers in connection with Theranos Wellness Centers in Arizona and California. Upon retention, Outside Counsel will assist the AGO on a contingency fee basis per the terms set forth in this Request for Proposal.

Arizona’s involvement with Theranos went above and beyond ‘deceptive acts and misrepresentations’ made to Arizona consumers. As we noted last September in Chapter 20, in early 2015 lawmakers quickly deregulated blood testing to permit direct consumer order of blood tests, after Elizabeth Holmes and company swept in and turned the governor and legislators quite ga-ga. It turns out the unimpressed Arizona Medical Association was on the mark in their objections. So undoubtedly this first move by a state entity is Powered by Embarrassment.

One wonders which law firm out of their lengthening list Theranos will choose. (See Chapter 29) Bids are due by 27 Jan. Hat tip to Bill Oravecz of Stone Health Innovations.

See here for the 32 previous TTA chapters in this Continuing, Consistently Amazing Saga, including the firing of 155 remaining staff (Ch. 32), the resignation of General Mattis from the BOD (Ch. 31), and Theranos’ annus horribilis (Ch. 30).

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