Medhealth Review

Elizabeth Holmes, ex-CEO, Theranos, Still Undergoing Trials for False Claims

Elizabeth Holmes, ex-CEO, Theranos, continues to face legal formalities for suspected involvement in fraudulent activities. Criminal allegations against her state that many patients, customers, and investors were misled by her about a flawed blood-testing technology. If proven guilty, what awaits her might be around 20 years in prison.

All in all, Holmes now faces nine counts of fraud along with two counts of conspiracy. 

The popular blood-testing equipment from Theranos had long ago developed significant problems. However, Holmes hid it from the general public, investors, and other consumers for years. Theranos could raise about $900 million from several investors. Besides, the firm secured a deal to roll out the technology in Walgreens pharmacies. 

The hype around the blood-testing technology was about its ability to scan for a wide range of ailments with just a few drops of blood. Also, the testing equipment was hyped to be faster and more accurate as compared to the conventional laboratory methods of testing blood. 

The defense established a very strong narrative in the court. It said Holmes’s share was never sold, and that as a young CEO, she had total faith in Therano’s credibility and quality. 

Holmes, as per reports, was more or less always on the ‘I don’t recall many of these’ standpoint. As some of these events happened around ten years ago, it seemingly is a convincing statement.

Theranos began as a consumer healthcare start-up way back in 2003. The firm was once valued at about $10 billion. The company’s main strategy revolved around revolutionizing the blood-testing industry through faster and accurate methods. 

Based mainly on the firm’s claims, Theranos was able to raise roughly about $724 million from venture capitalists and even private investors. However, these claims were later alleged to be false as these claims were never demonstrated. 

After more than a decade of continuous fundraising, the tide began to turn around 2015, mainly due to widespread skepticism from the media.

Theranos began closing down its clinical labs along with wellness centers in late 2016, before eventually ending operations in September 2018.

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