Theranos, the beleaguered Silicon Valley blood-testing company, is being accused of securities fraud by a major investor who has sued contending “myriad deceptions, falsehoods and fraudulent conduct.”
Partner Fund Management, a San Francisco hedge fund, filed the lawsuit on Monday in the Delaware Court of Chancery, according to a letter sent to its investors.
The suit is under seal, but the fund confirmed in a statement that it was taking legal action against Theranos.
To get Partner Fund to invest in the company, Theranos engaged in “a series of lies, material misstatements and omissions,” according the letter, which has been reviewed by The New York Times. The letter also indicates that the suit names two of the company’s principals, Elizabeth Holmes, its founder and chief executive, and Sunny Balwani, its former president, as defendants.
Theranos said it would fight…