Theranos | Page 2

As a result, the company will let 340 people go.

The California-based company ran into trouble after the Wall Street Journal published a series of articles that suggested its devices were flawed.

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Those technologies included a new 'minilab' product that can run a broad range of tests on a single desktop machine.

Earlier in July, Holmes was barred by a U.S. regulator from owning or operating a lab for at least two years.

Holmes was an entrepreneurial darling until it became apparent her miracle company was a sham.

"While we are disappointed by CMS' decision, we take these matters very seriously and are committed to fully resolving all outstanding issues," Holmes said in a statement.

Theranos was once praised for its fast, less-invasive blood testing technology, but the company has found itself in the spotlight after media reports raised questions about the accuracy of its proprietary tests.

Adam McKay will direct the upcoming medical drama based on the blood-testing company.

The company has suffered a series of blows, which began with a high-profile exposé from The Wall Street Journal last year that called the company's underlying technology into question.

Amid federal investigations and a threat to ban Holmes from the company, Theranos tenaciously continues to recruit new employees.

'We've taken comprehensive corrective measures to address the issues CMS raised in their observations,' a company spokesperson said.

Ramesh 'Sunny' Balwani has long been a key figure at the company and one of the closest confidants of the company's founder and CEO, Elizabeth Holmes.

The company is currently being investigated by several U.S. regulators.

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The FDA, two state departments of health and The Centers for Medicare and Medicaid have also opened probes against the company.

Government says the company failed to fix deficiencies at its California laboratory.

Data confirms that the company knew its finger pin-prick tests were often wrong when it used them in October, 2014.

The higher number of abnormal test results, researchers wrote, 'can have negative consequences for medicine in the form of extra testing, additional patient visits to clinics/hospitals, and added doctor services.'

Eighty one patients in a six-month period received hematology results that were not adequately controlled for quality.