IIRC, the securities fraud is based on them claiming to perform tests that were actually performed on standard blood test equipment made by Seimens, as well as

IIRC, the securities fraud is based on them claiming to perform tests that were actually performed on standard blood test equipment made by Seimens, as well as claiming to perform more diagnostics than they actually could. The whistleblowing is based on the data 'grooming' that their machines did, which made it look like the machines were more accurate than they actually were. Tyler Shultz brought up his concerns and was rebuked, and then went to the WSJ. The basic idea is that their machines didn't actually work.