1. The lawsuit is calculated to bring Theranos to insolvency sooner while they still have money in the bank
2. It's a way for an investor to convert unsecured equity into a secured debt - pushing them up the seniority queue in bankruptcy (I think specifically that damages from a successful fraud lawsuit can't be discharged)
1. The lawsuit is calculated to bring Theranos to insolvency sooner while they still have money in the bank
2. It's a way for an investor to convert unsecured equity into a secured debt - pushing them up the seniority queue in bankruptcy (I think specifically that damages from a successful fraud lawsuit can't be discharged)