Theranos will pay $4.65 million to Arizona customers

Last year blood-testing company Theranos shut down its operations at this this lab in Newark

Embattled blood-testing company Theranos Inc will pay $4.65 million to customers in Arizona who used its services between 2013 and 2016, the state's attorney general said on Tuesday.

The payout will average around $26 per consumer. Each customer will now be reimbursed the full amount the customer paid for testing regardless of whether the results were voided or corrected.

The agreement, announced Tuesday by Arizona Attorney General Mark Brnovich's office, comes after Brnovich alleged that Theranos' advertisements in the state "misrepresented, omitted, and concealed material information regarding its testing service's methodology, accuracy, reliability, and essential goal", the consent judgement reads.

On Monday, Theranos said it would stay out of the blood-testing business for at least two years in exchange for reduced penalties from federal health authorities.

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According to the agreement, CMS has withdrawn the revocation of Theranos' Clinical Laboratory Improvement Amendments operating certificates and slashed the civil monetary penalty against the company to $30,000. The state also alleged that Theranos was out of compliance with federal regulators. Similar to the federal settlement, it can not operate any laboratories in Arizona for two years.

The company, based in Palo Alto, Calif. was formed in 2003 as an alternative to traditional blood tests, touting its ability to perform more than 200 tests from a few drops of blood.

It was also revealed last month founder Elizabeth Holmes had agreed to give investors her shares in the company if they promised not to sue.

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