Until now, there has been one big reason to believe that Theranos, the controversial diagnostics startup, could survive despite widespread doubts about whether its technology, which the company once promised would revolutionize the blood testing business, even works: its investors, after putting $700 million into the startup, seemed solidly behind Theranos and its founder, Elizabeth Holmes.
Not any more. Partner Fund Management, a San Francisco-based hedge fund with $4 billion under management, filed a lawsuit alleging that it invested in Theranos based on misleading statements made by Holmes and Theranos.
