Investors to Sue Theranos, Elizabeth Holmes

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Updated Apr. 13, 2017 2:31PM EDT / Published Nov. 28, 2016 3:29PM EST

Brendan McDermid/Reuters

Investors are suing pharmaceutical company Theranos and its founder Elizabeth Holmes, alleging fraudulent claims, Reuters reported on Monday. The investors accuse Theranos of making misleading claims about its technology, a blood-sampling product that has been shown not to perform as the company claimed. Theranos announced in October that it would be shutting all its blood-testing facilities. The company is facing other legal fallout after its alleged fraud, including a $140 million lawsuit from Walgreens, which ended a business partnership with them in June, after Theranos's blood tests were ruled unusable. Theranos is currently under criminal investigation by the SEC.

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Investors to Sue Theranos, Elizabeth Holmes

Brendan McDermid/Reuters