The attorney general of Arizona plans to sue Theranos, alleging that the blood-testing startup defrauded consumers, according to a state document requesting the assistance of outside legal assistance with the case. According to the document, the state is seeking a law firm to help it commence "legal action against Theranos, Inc. and its closely related subsidiaries for violations of the Arizona Consumer Fraud Act arising out of Theranos Inc.'s long-running scheme of deceptive acts and misrepresentations relating to the capabilities and operation of Theranos blood testing equipment." The case was brought by Arizona because most of Theranos's blood-testing centers are in the state. The potential lawsuit, which was prompted by Wall Street Journal reports on the deficiencies of its lab practices, would seek civil penalties and restitution.
Theranos is likely to face similar actions in other states in which it operates, such as California and Pennsylvania, a source tells Fast Company. Since the scandal erupted last spring, the company has faced at least a dozen lawsuits brought in federal court. Theranos declined comment to Reuters about the potential legal action.
Here is Arizona's request for proposals for outside counsel: