Also Theranos will be fined and the lab in California will not get any Medicare and Medicaid funding for blood testing. The lab in Arizona can remain open. The sanctions, Theranos says, are not effective immediately.

Theranos ran into trouble last October after a publication in Wall Street Journal. The newspaper wrote that Theranos falsely claimed it could run up to 200 different blood tests with just a few drops of blood, using its own developed nanotube. Since then Theranos has been scrutinized by US regulators like the FDA.

Internationally Theranos ran into trouble because it failed to publish information on the technology it is using to revolutionize blood testing. CEO and founder Holmes states that all problems will be solved an the lab in Newark will be rebuilt from the ground up.