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U.S. Securities and Exchange Commission

Theranos CEO Elizabeth Holmes is banned from running medical labs

Theranos CEO Elizabeth Holmes is banned from running medical labs

Blood-testing start-up Theranos Inc. has been dealt a major blow: Federal regulators banned founder and Chief Executive Elizabeth Holmes from owning or running a medical laboratory for two years.

The sanctions, announced late Thursday by the company, follow months of investigation by government testing regulators at the Centers for Medicare & Medicaid Services. Theranos, which was reportedly worth $9 billion two years ago, is the latest much-hyped Silicon Valley firm to stumble while trying to enter the healthcare field.

Medicare officials first proposed these sanctions in March, which include revoking the license of the company's Newark, Calif.,...

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