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Well, if it can be shown that they lied or omitted material information in the course of soliciting equity investments, that's a Rule 10b-5 violation, the SEC's
by HillRat 11y ago
Well, if it can be shown that they lied or omitted material information in the course of soliciting equity investments, that's a Rule 10b-5 violation, the SEC's big club. The fact that Theranos is a private company is immaterial, as is the possibility that none of its investors may have complained.
- GCA10 11y agoTheranos has at least two mainstream venture funds among its investors. These funds have limited partners, most of which are fairly famous institutions (including big-name universities). These LPs hate to see their money squandered -- and they may feel a legal obligation to raise a ruckus.