PHOENIX - Attorney General Mark Brnovich announced today his office obtained a full refund for every Arizonan who purchased a Theranos blood test. Theranos, Inc. agreed to pay $4.65 million dollars in consumer restitution as part of a consent judgment reached with the Arizona Attorney General’s Office.
Between 2013 and 2016, Theranos sold approximately 1.5 million blood tests to more than 175,000 Arizonans. According to Theranos, 10 percent of the tests were voided or corrected. Each customer will now be reimbursed the full amount the customer paid for testing regardless of whether the results were voided or corrected.
“Everyone who paid for a test will receive a full refund, period,” said Attorney General Mark Brnovich. “This is a great result and a clear message that Arizona’s consumer protection laws will be vigorously enforced.”
Theranos has agreed to pay the State $4,652,000 in consumer restitution, $200,000 in civil penalties, $25,000 in attorneys’ fees, and the costs for a claims administrator to distribute the restitution to consumers. In addition, Theranos may not own, operate, or direct any laboratory in Arizona for a period of two years. Theranos will also be subject to civil penalties of up to $25,000 per violation of the consent judgment in the future.
The State alleges that Theranos’ advertisements misrepresented the method, accuracy, and reliability of its blood testing and that the company was out of compliance with federal regulations contained in the Clinical Laboratory Improvement Amendments (“CLIA”) of 1988.
After the judgment is entered, the State will select a claims administrator to oversee the refund process. Once selected, the claims administrator will collect contact information from Theranos and issue refund checks to Arizona consumers.
Assistant Attorneys General Matthew du Mee and Stephen Emedi handled this case.