Feds ban Theranos CEO Elizabeth Holmes from ruing lab for 2 years

PALO ALTO — Theranos says the federal govement has baed founder and CEO Elizabeth Holmes from owning or ruing a medical laboratory for two years.

The company aounced the decision by the Centers for Medicare & Medicaid Services on Thursday.

The ban stems from a review of the company’s Newark, Califoia, lab. The company acknowledged in April it was being investigated by several regulators and agencies following reports by The Wall Street Joual in which former employees said the company’s tests were unreliable.

Theranos also says the govement has suspended its approval to receive Medicare and Medicaid payments related to bloodwork.

In a statement, Holmes says she’s disappointed by the decision, but the company accepts “full responsibility for the issues.”

The 32-year-old Holmes started Palo Alto-based Theranos in 2003.

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