Theranos founder Elizabeth Holmes has been banned for two years from owning or operating a lab following an investigation into the health tech startup's blood testing methods.
The company announced the sanctions from the Centers for Medicare & Medicaid Services late Thursday. The sanctions were handed down following a review of Theranos' lab in Newark, Calif.
Theranos' lab will also have its license revoked by CMS, and must pay a financial penalty.
“While we are disappointed by CMS’ decision, we take these matters very seriously and are committed to fully resolving all outstanding issues with CMS and to demonstrating our dedication to the highest standards of quality and compliance," said Holmes in a statement.
The ban by CMS is the latest blow to Theranos, whose blood testing practices have been questioned in recent months. The Justice Department and the Securities and Exchange Commission are conducting separate investigations into Theranos' practices. In May, the company was hit with a class-action lawsuit from consumers.
Questions about Theranos' revolutionary blood testing techniques started to surface last fall, after a Wall Street Journal report uncovered flaws in its testing.
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