On Thursday, medical testing company Theranos announced the departure of its president and chief operations officer, Sunny Balwani, even as a swarm of federal and state regulatory agencies descend upon the company.
The U.S. Attorney’s Office and Securities and Exchange Commission (SEC) have opened criminal and civil probes into blood-testing company Theranos, just days after reports that the Centers for Medicare & Medicaid Services were proposing to shutter its labs and ban its founder from the medical testing business.
Biotech sensation Theranos was supposed to be Silicon Valley’s next hot IPO. But late Thursday evening, the company told Fortune Magazine that its board of directors had shrunk from 12 members to five as it battles a perfect storm of negative publicity.