A San Francisco-based hedge fund has filed a lawsuit against Theranos Inc, accusing the blood testing company of using fraudulent methods to attract an investment of nearly $100 million, according to an investor letter filed by the fund.
The hedge fund, Partner Fund Management LP, filed the lawsuit in the Delaware Court of Chancery on Monday afternoon, a letter to the hedge fund’s investors said.Yeah but other than that...
“Through a series of lies, material misstatements, and omissions, the defendants engaged in securities fraud and other violations by fraudulently inducing PFM to invest and maintain its investment in the company,” said the letter, which was reviewed by Reuters....MORE
Actually the allegations sound remarkably similar to a stock swindle I mentioned back in 2007:
Isn't that damn fine bloviating? It's hard to research but I think Uttley et. al. got away with $100 mil...."The simple truth was consumed in the belly of deception, but now has been vomited for the world to see," Uttley began.He then proceeded to tell a story of three men, whom he described as "liars," "cheats," and "scallywags," who worked with law enforcement officials and the press to spread false rumors about the company with the intent of buying Equisure out at 50 cents a share, a tiny fraction of the stock's trading price of $15, before AMEX suspended trading Aug. 1....
