Theranos agrees to pay $4.65 million in Arizona refunds


The payout will average around $26 per consumer.

The troubled company also said it plans to withdraw its appeal of the sanctions imposed by CMS on its Newark clinical lab. About 10 percent of those results were later voided by the company, the court documents indicate.

Theranos has reached a settlement with the Centers for Medicare and Medicaid Services that resolves all legal and regulatory proceedings between the federal agency and the embattled Palo Alto blood diagnostics firm, the company announced Monday.

As part of the agreement, Theranos will pay out $4,652,000 in full refunds to all customers who purchased tests between 2013 and 2016.

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Theranos said the settlement demonstrated its "commitment to resolving the issue amicably on behalf of Arizonans and working collaboratively with state officials".

In addition to reimbursing Arizona customers, Theranos agreed to pay out $200,000 in civil penalties, $25,000 in attorney fees, and cover the cost of the third party who will oversee the refund process. Similar to the federal settlement, it can not operate any laboratories in Arizona for two years.

Arizona had sued Theranos for misrepresenting the method, accuracy and reliability of its blood tests and failing to comply with regulations.

Elizabeth Holmes, the company's founder, was once valued by Forbes at $4.5 million, a net worth the publication lowered to "nothing" a year ago based on her 50 percent stake in Theranos.