Cert. Granted in Theranos Blood Test Class Action

A federal judge has certified a proposed Class in the Theranos blood test class action lawsuit which alleges that the company, as well as certain Walgreens subsidiaries and entrepreneur Elizabeth Holmes, deceived consumers about its accuracy.

The certified Class includes all consumers nationwide who purchased Theranos blood test services between November 2013 and June 2016. The court also certified three subclasses, including consumers who were subjected to tiny blood draws using the “Edison” device, all Arizona purchasers of Theranos blood tests, and all California consumers who paid for Theranos testing.

According to the class action lawsuit, Theranos and Walgreens put the blood test on the market before it was able to produce reliable results.

The plaintiffs say that they and other consumers would not have purchased the tests had they known the advertising claims were false. The Theranos class action alleges RICO violations, battery and medical battery claims, and claims under Arizona and California consumer protection laws.

“Was the Theranos blood testing program market-ready?” posed U.S. District Court Judge H. Russel Holland in his order certifying the proposed classes. “If not, would anyone deem Theranos/Walgreens’ blood test results reliable?” the judge wrote. “Resolution of the plaintiffs’ contention that defendants’ test results were all unreliable is central to the validity of all of plaintiffs’ claims.”

Class certification is limited to only six of the claims in the Theranos blood test class action lawsuit, noted the judge in his order. Plaintiffs had limited their motion for certification to six of the total of 14 claims lodged against the company.

Theranos Blood Test Makers Accused of Massive Fraud

Theranos blood test services, according to the company and its founder, would revolutionize the testing industry.

The product was a portable blood analyzer which could conduct comprehensive blood tests of a few drops of blood from the finger.

However, according to an investigation into the product, the Theranos blood test only produced results for a small sliver of tests, with most testing conducted on commercial blood analyzers.

Despite reports that the product was not ready to be introduced into the market, the company allegedly entered into an agreement with Walgreens to start Wellness Clinics in 8,000 locations. At these clinics, consumers were told they could get blood tests without a doctor or lab visit.

However, Theranos reportedly rushed the blood test analyzer, known as the Edison, to market too early and without adequate testing. Consumers accused Theranos and its founders of using them as guinea pigs to further their product without conducting proper tests to ensure it worked.

In his order certifying the Class, U.S. District Court Judge H. Russel Holland notes that, Theranos, its founder Elizabeth Holmes, and CEO Ramesh Balwani were accused of “massive fraud” by the Securities and Exchange Commission in March 2018. The U.S. agency alleged that they had made false and misleading statements regarding the portable blood analyzer to investors and the public.

In the aftermath of the scandal, several Theranos blood test class action lawsuits were filed. Consumers alleged that thousands of blood test results produced by the Edison device were voided because of accuracy concerns. The cases were later consolidated into multidistrict litigation.

The consolidated Theranos class action lawsuit faced dismissal in 2017. As a result, Judge Holland trimmed several claims from the class action, including allegations of fraud under Arizona state law. In addition, certain claims based on advertisement that the court considered “mere puffery” were dumped as well.

The plaintiffs were given a few weeks to rectify their pleadings on a number of other issues, including for battery and medical battery.

The Theranos blood test class action lawsuit is seeking a number of damages, including punitive; however, they have agreed not to pursue claims for damages based on emotional distress, costs related to necessary additional tests, or medical care.

Did you take a Theranos blood test? Were your results voided? Tell us your story in the comment section below!

The plaintiffs and recently certified Class are represented by attorneys Michael W. Sobol, Roger N. Heller and Melissa Gardner of Lieff Cabraser Heimann & Bernstein LLP, Laurence D. King of Kaplan Fox & Kilsheimer LLP, Joseph G. Sauder and Joseph B. Kenney of McCuneWright LLP, and Lynn Lincoln Sarko, T. David Copley, Gretchen Freeman Cappio, Mark D. Samson, and Christopher Graver of Keller Rohrback LLP.

The Theranos Blood Test Class Action Lawsuit is In re: Arizona Theranos Inc. Litigation, Case No. 2:16-cv-02138, in the U.S. District Court for the District of Arizona.

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