Theranos shut down its clinical labs in several states and wellness centers inside Arizona Walgreens stores in October and laid off a large part of its workforce. The move came after federal regulators barred company founder and CEO Elizabeth Holmes from owning or running a medical laboratory for two years. Theranos had appealed the ban, but announced Monday it had reached a settlement with the federal Centers for Medicare and Medicaid Services to resolve the issues. The company said the federal agency withdrew the revocation of its lab operating certificates and reduced a civil penalty to $30,000. blogThe company agreed not to operate any labs nationwide for two years. The federal probe into Theranos followed reports by The Wall Street Journal in which former employees said the company’s tests were unreliable. After the reports, the company voided or revised many of its test results. In Arizona alone, 10 percent of 1.5 million blood tests were voided or corrected. The company Holmes founded in 2003 withdrew from its clinical lab and retail business last year to focus on its miniaturized, automated blood testing machines. Holmes personally lobbied the Arizona Legislature and Gov.
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