$500,000 Fine and 10-Year Ban – KEY Facts About Fall of Theranos and E. Holmes, Biggest Fraud and Bubble

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The founder of Theranos, Elizabeth Holmes, whose designs promised to make a real revolution in the field of blood testing and analysis, were charged with $700 million fraud bill.

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In a nutshell

34-year-old Holmes was born in Washington. In 2002, she enrolled at Stanford University, but a year later dropped out of school.

With a permission from her parents, she invested the money for her education in private business. The company was named ‘Theranos’ and after some period of time announced a breakthrough in the field of blood analysis.

Representatives of the company claimed that the invented method allows analyzing the blood using only six drops of it. Sponsors quickly responded to the offer and invested money.

According to data provided by the Securities and Exchange Commission, Theranos deliberately misled investors by providing false and inaccurate data. In addition to a $500,000 fine, Elizabeth Holmes also lost control of the company she founded.

Source: OfficeChai

Retrospective

2013

  • It’s been 10 years since the company was founded;
  • The senior biochemist of the company committed suicide, having told his wife that the company failed.

2014

  • Since 2014 the company has managed to conclude several transactions with clinics and laboratories.
  • Holmes is named one of the richest women in America by Forbes.
  • Her has raised more than $400 million and seemed to be successful.

2015

  • The company raised more than $500 million additional investments.
  • ‘Theranos’ was estimated at $9 billion, while Holmes owned 50% of the company.
  • F.D.A. didn’t approve the first of more than two hundred tests (for the herpes virus) using Holmes technology.

SEE ALSO: $1.4 billion Startup Shows its Reality Headset After 7 Years of Development (!)

2016

  • The largest arrangement was made with the Walgreens network, according to which Theranos managed to open about 50 small blood collection centers at partner stores.
  • Several government companies simultaneously launched investigations into the activities of Theranos and its founder.
  • In half a year, Walgreens sues Theranos for $140 million, alleging breach of contract.
  • Forbes revised the market value of Elizabeth Holmes and issued a new result: $800 million.
  • Medicare and Medicaid Services reports Theranos was not complying with federal blood-testing rules and gives the company 10 days to respond.

2017

  • Theranos fires almost half of its workers and closes its last blood testing location;
  • The company decides to stay out the blood test business, paying money to the government and Arizona clients (more than $4.65 million)

SEE ALSO: Smile: Silicon Valley Dumbest Startups in 2017 (Video)

2018

  • The SEC charges Holmes and Balwani. Elizabeth Holmes loses her company, she is fined half a million dollars.
  • In the next 10 years, Elizabeth Holmes has no right to engage in public business.

theranos-elizabeth-holmes-fall-pic1

Source: Bloomberg


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$500,000 Fine and 10-Year Ban - KEY Facts About Fall of Theranos and E. Holmes, Biggest Fraud and Bubble
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$500,000 Fine and 10-Year Ban - KEY Facts About Fall of Theranos and E. Holmes, Biggest Fraud and Bubble
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The founder of Theranos, Elizabeth Holmes, whose designs promised to make a real revolution in the field of blood testing and analysis, were charged with $700 million fraud bill.
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