Indirect Share Purchasers Cleared To Sue Theranos

Law360, New York (April 19, 2017, 7:13 PM EDT) -- Investors who purchased Theranos Inc. stocks through a third party can sue the company for securities fraud, and the investment firms that brokered the deals may be on the hook for fraud too, a California federal judge said on Tuesday.

U.S. Magistrate Judge Nathanael Cousins cleared Robert Colman and Hilary Taubman-Dye to continue with their potential class action alleging common law fraud and violations of a section of the California Corporations Code dealing with misrepresentations, but dismissed other claims under the corporations code. He gave the...
To view the full article, register now.