Theranos is looking to avoid lawsuits from investors by offering them additional shares if they promise not to sue the company, according to a Wall Street Journal report.
Shares to be offered will come from CEO Elizabeth Holmes personal stake in the company, which may cause the founder to lose a majority ownership in the blood-testing company, sources close to the company told the WSJ.
The arrangement will cover investors who joined in Theranos’ most recent $600 million round of financing, but will not cover investors from earlier rounds. Investors approved in the deal would receive 2 times the shares they originally bought, according to the report.
The deal has won approval from the company’s board, but is still under consideration by investors, according to the paper.
Certain investors are not participating in the deal, including San Francisco-based hedge fund Parter Fund Management and Rupert Murdoch, who the company will reportedly buy back shares from at $1 per share, according to the WSJ.
At DeviceTalks Boston, Tyler Shultz will give attendees an inside look at Theranos and how he was able to sound the alarm after he realized the company was falling apart. Shultz will take attendees behind the story that everyone is talking about: the rise and fall of Elizabeth Holmes and her diagnostic company, Theranos.
Join Shultz and 1,000+ medical device professionals at the 8th annual DeviceTalks Boston.