The new lawsuit also says Theranos claimed to have contracts with big players in the medical world, including drug makers, insurance agencies, and hospitals. Its only legitimate partner was Walgreens, which ended up with unsafe and inaccurate blood tests -- 31,000 results had to be thrown out due to faulty testing. Yikes again!
So, to recap: Theranos said it had invented revolutionary new technology that didn't exist, and as Theranos continues to unravel, it's become clear that investors put their millions and blind faith into a company and CEO that were shady, at best -- one of the conditions of investment, as revealed by the Vanity Fair feature, was that investors couldn't know how the technology worked. Which seems... problematic. People still forked over their cash.
It wasn't until an investor from Google went to Walgreens and saw vial after vial of his blood being drawn that eyebrows started to raise. So it's a little hard to feel sorry for these hedge funds who threw millions of dollars at a company without bothering to vet the fake technology that was the basis of all the hype.