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Theranos Under Criminal Investigation

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Update 5:40 p.m. Both Bloomberg and The Wall Street Journal are reporting federal prosecutors and the Securities and Exchange Commission are investigating Theranos. Bloomberg identified the U.S. Attorney’s Office for the Northern District of California as launching a probe, and said Theranos had confirmed both investigations.

The Journal,  citing anonymous sources, said that Walgreens and the New York State Dept. of Health have received subpoenas seeking information on Theranos' description of its technology.

Meanwhile, the SEC is looking into potentially deceptive statements Theranos may have made to investors, the paper said.

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NBC's Today show this morning broadcast an interview with Theranos CEO and founder Elizabeth Holmes, the first time Holmes has spoken in public about the federal government's scathing inspection report on the company's California blood lab. That assessment found problems at the lab that it said were potentially life-threatening to patients.

Holmes took responsibility for the lab's failures and told interviewer Maria Shriver she felt "devastated that we did not catch and fix these issues faster."

When asked if she thought that Theranos would survive, Holmes said, "Absolutely."

She told Shriver the experience had made her "a better person" and "a better leader."

Theranos, which has attempted to  revolutionize the  blood-testing industry, is currently in a holding period while the Centers for Medicaid & Medicare Services review the company's arguments as to why it shouldn't be subject to severe sanctions. CMS is threatening penalties after it found Theranos' attempt to correct the lab's deficiencies insufficient.

The agency has proposed revoking the company's license to operate the lab, as well as banning Holmes from owning a testing facility for at least two years.

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