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发帖数: 11530 | 1 The Spectacular Rise and Fall of Elizabeth Holmes and Theranos
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Contributors: Joel Rosenblatt
Updated on December 3, 12:43 PM EST
Theranos Inc. founder Elizabeth Holmes was criminally charged in June 2018
with defrauding investors following the collapse of her blood-testing
startup. The revolutionary technology she pitched proved irresistible: a
machine that could run an array of tests run on a tiny amount of blood,
doing away with frightening, inefficient and costly intravenous draws and
vials. Investments from Silicon Valley’s most prominent funds poured in,
making Holmes the world’s youngest female self-made billionaire.
But it proved too good to be true. A 2015 Wall Street Journal expose
revealed uncertainties about the accuracy and viability of Theranos’ blood
tests. By 2016, the company once valued at $9 billion was besieged by
investor lawsuits and government investigations. It was sanctioned in July
of that year after federal inspectors found laboratory failures jeopardized
patients’ health. Holmes settled a civil suit by the U.S. Securities and
Exchange Commission in March 2018, while former Theranos President Ramesh “
Sunny’’ Balwani, Holmes’s onetime lover, continues to fight the agency.
Holmes and Balwani will face separate juries — her first, then him — when
their criminal cases go to trial.
Key Coverage
Theranos Ex-CEO’s Defense Shift Signals She’ll Be Cast as Victim
Broken Love at Theranos May Be Tested in Criminal Fraud Case
Blood, Fraud and Money Led to Theranos CEO's Fall From Grace
By The Numbers
20
Years Holmes could face in prison if convicted, though her sentence will
likely be shorter
$4.5 billion
Holmes's estimated net worth in 2015 based on Theranos's $9 billion
valuation
12
Number of tests Theranos machines were able to perform, compared with the
dozens the company said could be run
Why It Matters
In Silicon Valley, where entrepreneurs are prone to aspirational statements
about how technology can improve lives, there’s little reason not to
exaggerate or lie to raise money if there aren’t serious repercussions.
That’s the message prosecutors are sending by seeking to put Holmes and
Balwani in prison. Evidence in the case shows they made audacious promises
about their blood-testing machine that belied reality. Left unpunished, the
argument goes, such statements undermine confidence in company pitches and
the justice system.
Hanging over the prosecution is the mystery of how Holmes and Balwani
managed to siphon hundreds of millions of dollars from investors for an idea
that proved to be such a colossal failure. The Stanford dropout’s rise and
fall has been the subject of innumerable magazine stories, as well as a
book, documentary, podcast and feature film — which collectively have
explored everything from her uncanny deep voice to her imitation of Steve
Jobs wearing black turtlenecks.
While scores of internal Theranos documents and communications unearthed in
litigation tell part of what went wrong at the startup, how Holmes attracted
such devotion to her company’s board from statesmen like Henry Kissinger
and George Shultz remains a subject of speculation. A harder-to-answer
question is why she persisted in her pursuit of success even after Theranos
crashed. Her legal defense team has explored blaming the company’s downfall
on advocacy journalism, and has floated the possibility that she may be
afflicted with a mental condition, even going so far as to hire an expert
witness who specializes in violence against women. Holmes will have to
settle on a strategy for her trial in March, which may finally shed light on
her motivation. | W***n
发帖数: 11530 | 2 I am surprised that she COULD fool so many people including savvy VC
investors, medical professionals and regulators.. | W***n
发帖数: 11530 | 3 I guess she got super chrisma & sweet tongue :-) |
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