There was a time when the Palo Alto-based medical startup company Theranos was highly valued and praised. The company lobbied hard in Arizona and was able to open up a laboratory in Scottsdale, get their blood-testing service into 40 Walgreens locations and then got lawmakers to pass a bill that would allow customers to use their blood-testing service without getting approval from a doctor.
However, Theranos’ methods were unproven and they soon came under heavy scrutiny. Federal regulators tried to shut down Theranos’ lab before Theranos made the decision for them. Walgreens shut down the Theranos blood test facilities at their locations and the state is looking to sue Theranos now. The company that was once worth $9 billion is a husk of its former self.
This is just another classic example of consumer fraud, a practice that seems to be standard operating procedure for businesses nowadays. Dangerous products, unproven methods and skeptical production means are all ways in which fraudulent companies will hurt consumers. None of it is acceptable, and it is nice to see the state of Arizona taking a stand against Theranos.
Many other consumers involved with different products and companies, though, are being hurt under negligent circumstances. These people need legal help to address the obvious flaws of the company they are trusting and buying from. Consumer fraud is an insidious behavior on the part of companies, and they need to be held accountable for their actions.
Source: azcentral, “Theranos to face Arizona consumer-fraud suit?,” Ken Alltucker, Jan. 12, 2017