Theranos founder Elizabeth Holmes charged with $700m fraud

Latest news

    Elizabeth Holmes, Founder & CEO of Theranos speaks at Forbes Under 30 Summit at Pennsylvania Convention Center on October 5, 2015 in Philadelphia, Pennsylvania.Image copyright Getty Images
    Image caption Theranos founder Elizabeth Holmes

    The founder of a start-up that promised to revolutionise the blood testing industry has agreed to settle charges that she raised more than $700m (£500m) fraudulently.

    The Securities and Exchange Commission said Elizabeth Holmes and Theranos deceived investors about the firm’s technology.

    Ms Holmes will lose control of the firm and be fined $500,000.

    An SEC official called the fallout an “important lesson for Silicon Valley”.

    “Innovators who seek to revolutionise and disrupt an industry must tell investors the truth about what their technology can do today – not just what they hope it might do someday,” said Jina Choi, director of the SEC’s San Francisco regional office.

    Theranos was founded in 2003 and sought to develop an innovative blood testing device that used a single drop of blood.

    However, its fortunes waned in 2015 after reports in the Wall Street Journal suggested the devices were flawed and inaccurate.

    The charges were brought against Theranos and its former president Ramesh “Sunny” Balwani as well as Ms Holmes.

    The SEC plans to bring a case against Mr Balwani.

    The regulator alleged that Theranos, Ms Holmes and Mr Balwani made a series of false and misleading statements in investor presentations, product demonstrations and interviews.

    Their actions deceived investors into believing that its key product – a portable blood analyser – could conduct comprehensive blood tests from a drop of blood.

    The SEC said: “In truth … Theranos’ proprietary analyser could complete only a small number of tests, and the company conducted the vast majority of patient tests on modified and industry-standard commercial analysers manufactured by others.”

    View the original article: http://www.bbc.co.uk/news/business-43406050

    http://www.bbc.co.uk/news/business-43406050

    In the same category are

    Sri Lanka v England: Tourists suffer heaviest ODI defeat England's Jos Buttler was dismissed for a duck from just his second ball Fifth one-day international, Colombo Sri Lanka 366-6 (50 overs): Dickwella 9...
    WTA Finals: Defending champion Caroline Wozniacki beats Petra Kvitova in Singapore Caroline Wozniacki received treatment on her left knee midway through the second set before going on to beat Petra KvitovaDefending champion Caroline...
    Brexit: Back to the backstop Image copyright Getty Images"The backstop." That was Theresa May's succinct reply when she was asked in the House of Commons on Monday what was in the...
    Abortion decriminalisation bill tabled in Commons Image copyright Science Photo LibraryLegislation to decriminalise abortion in the UK, including Northern Ireland, has been tabled in the Commons. Labo...
    Fake news follows migrant caravan’s journey north Media playback is unsupported on your device Media captionTrump and the facts about the migrant caravanA row raging over the migrant caravan travelli...
    Bar crawl students ‘apple bobbed in urine’ Image copyright Family photo Image caption Ed Farmer was found unresponsive and taken to hospital, but diedStudents at an "initiation-style" event had...

    Leave a comment

    Your email address will not be published. Required fields are marked *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.