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WSJ reports that Theranos failed a major inspection by the Centers for Medicare and Medicaid Services of its only active lab last September. Its other lab failed a similar inspection in late 2015, and the company subsequently had its testing license revoked in California.
Now what? Since the first report from the Journal in Oct. 2015, Theranos has unraveled—voiding test results, federal investigations, a ban on its CEO from running a lab for two years. While the company could potentially find success with its new business model, its reputation might be too tarnished. Today, Theranos has become the Silicon Valley poster child for fraud.