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United States regulators have banned Elizabeth Holmes, the chief executive of Theranos, from owning or operating a medical laboratory for at least two years, in a major setback for the embattled blood-testing firm and its once widely lauded founder. In a statement late Thursday, Theranos said the regulators also yanked the operating license of its Newark, Calif., laboratory and forbade the laboratory from taking Medicare and Medicaid payments for its services. Regulators will also levy a monetary penalty that Theranos did not specify. (Tejada, 7/8)

The sanctions, which include an unspecified monetary penalty, cap eight months of public scrutiny that began in October when The Wall Street Journal raised questions about the company’s ability to perform a wide variety of blood tests with just a few drops of blood. Theranos once was a leading light in the technology boom, with the private company valued at $9 billion in 2014. (Siconolfi, 7/8)

Along with the ban on Holmes, CMS has pulled the operating license of the company’s Newark laboratory and will also levy a fine, Theranos announced in a statement. It’s not clear yet how much the company, once valued at $9 billion, will have to shell out. “While we are disappointed by CMS’ decision, we take these matters very seriously and are committed to fully resolving all outstanding issues with CMS and to demonstrating our dedication to the highest standards of quality and compliance,” Holmes said in the statement, adding that the company accepts “full responsibility for the issues” at the lab. (Thielking, 7/8)