June 1, 2018 / 1:18 PM / 19 days ago

Theranos investors cannot pursue class action -U.S. judge

June 1 (Reuters) - A U.S. judge has ruled that investors who claimed that Theranos Inc defrauded them into investing indirectly in the company by touting revolutionary blood-testing technology that never existed cannot pursue their claims as a class action.

In a decision late on Thursday, U.S. Magistrate Judge Nathanael Cousins in San Jose, California said five of the investors’ six claims contained an element of reliance, making it more appropriate for the investors to sue individually rather than as a group.

The proposed class of plaintiffs included more than 200 people who invested in funds between July 29, 2013 and Oct. 5, 2016 for the purpose of buying shares in the blood-testing company.

Lawyers for the plaintiffs did not immediately respond on Friday to requests for comment.

The defendants also include Theranos Chief Executive Elizabeth Holmes and former Chief Operating Officer Ramesh “Sunny” Balwani. (Reporting by Jonathan Stempel in New York; Editing by Bernadette Baum)

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