Arizona Attorney General Mark Brnovich on Tuesday announced a $4.65 million settlement for consumer restitution from Theranos, the med-tech startup that was once the darling of Silicon Valley but has since faced legal problems for lab errors and deficiencies.

In a statement, Brnovich said, “This is a great result and a clear message that Arizona’s consumer protection laws will be vigorously enforced.”

He also says the settlement will not allow Theranos to own, operate or direct any laboratory in Arizona for two years.

It was touted as a great victory for Arizonans, but the backstory of Theranos in Arizona is a little more complicated.

In fact, Arizona welcomed Theranos with open arms even as other states like California and Pennsylvania cast their doubts.

So what happened, and how did Arizona’s elected officials get caught so off guard?

Joining us now is freelance reporter Seung Lee, author of the Newsweek article “Arizona: Where Theranos Still has a Friend.”