Theranos CEO Elizabeth Holmes banned from running labs for two years

The US Centers for Medicare & Medicaid Services has also revoked the license for Theranos' lab in California.

Daniel Van Boom
Daniel Van Boom Senior Writer
Daniel Van Boom is an award-winning Senior Writer based in Sydney, Australia. Daniel Van Boom covers cryptocurrency, NFTs, culture and global issues. When not writing, Daniel Van Boom practices Brazilian Jiu-Jitsu, reads as much as he can, and speaks about himself in the third person.
Expertise Cryptocurrency, Culture, International News
Enlarge Image

Theranos founder and CEO Elizabeth Holmes.

JP Yim, Getty Images

After months under the microscope, Theranos' CEO Elizabeth Holmes has been banned from operating a laboratory for two years, and the health-tech company's Newark, California laboratory has had its license revoked.

The ruling was made by the federal Centers for Medicare & Medicaid Services, and was announced by Theranos on Thursday.

"We accept full responsibility for the issues at our laboratory in Newark, California, and have already worked to undertake comprehensive remedial actions," Holmes said. "Those actions include shutting down and subsequently rebuilding the Newark lab from the ground up, rebuilding quality systems, adding highly experienced leadership, personnel and experts, and implementing enhanced quality and training procedures."

Theranos was once a promising company that set out to innovate blood testing. Two years ago, it was valued at $9 billion. But it has faced increased scrutiny, along with civil and criminal investigations, since a Wall Street Journal report in October suggested Theranos' blood-testing devices were flawed. In June, it lost its partnership with US drug giant Walgreens.