Theranos says the federal government has banned founder and CEO Elizabeth Holmes from owning or running a medical laboratory for two years.
The ban stems from a review of the company’s Newark, Calif., lab. The company acknowledged in April it was being investigated by several regulators and agencies following reports by the Wall Street Journal in which former employees said the company’s tests were unreliable. Theranos also says the government 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.”