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Elizabeth Holmes

Elizabeth Holmes is an American entrepreneur, the former CEO of Theranos, a blood test company, which she founded in 2003 at age 19 while she was a chemical engineering major at Stanford University. The company was originally based on her invention and patent for a way to run 30 common clinical laboratory tests on blood obtained via a fingerstick, using microfluidics or “lab-on-a-chip” technology – a much faster and cheaper method than traditional lab testing techniques.

By 2014, the company offered 200 tests, was licensed to operate in every state in the US, and was valued at nearly $10 billion.

Theranos entered into a partnership with drugstore chain Walgreens to build thousands of Wellness Centers (beginning with California and Arizona) offering a full menu of blood tests directly to consumers at a charge that is generally one-quarter to one-tenth of what others charge.

However, an in-depth investigative report by The Wall Street Journal in October 2015 revealed aspects of Theranos that the secretive company has kept from public view. Based on interviews with several employees and others with knowledge of events at Theranos, the WSJ disclosed that Theranos runs only a handful of tests using its proprietary technology, among many issues raised by the newspaper. Theranos is no longer the darling of the media but the subject of numerous investigations by both journalists and federal and state agencies. In July 2016, CMS applied the most stringent sanctions it could to Theranos for problems it reported at Theranos’ Newark, CA lab, including a two-year prohibition on Holmes owning any CLIA-certified lab.

As a result of in-depth investigations, the Security and Exchange filed charges on March 14, 2019, stating that Theranos, Holmes, and Balwani raised more than $700 million from investors through an elaborate, years-long scheme that involved exaggerating or making false statements about the company’s technology, business, and financial performance.

To settle the SEC’s charges, Holmes agreed to pay a $500,000 fine and she agreed to surrender almost 19 million shares of Theranos stock and voting control of the company, the SEC said. Also, she was barred from running a public company for 10 years. At the time, Holmes did not admit to nor deny the charges. Balwani said he would contest the charges.

Three months later, the federal Department of Justice filed indictments against Holmes and Ramesh “Sunny” Balwani, charging each with two counts of conspiracy to commit wire fraud and nine counts of wire fraud.

As of 2014, Holmes had 18 US patents and 66 non-US patents in her name and is listed as a co-inventor on over a hundred patent applications. She was the youngest self-made female billionaire on the 2014 Forbes 400 list, with an estimated net worth of $4.6 billion. After CMS, the FDA, the Department of Justice and Securities and Exchange Commission launched investigations of Theranos in early 2016, Forbes updated that figure to $0.

SEC Charges Theranos with ‘Massive Fraud’

CEO SUMMARY: In an action against Theranos and two of its executives, the SEC said in a federal court filing this month that the company, CEO Elizabeth Holmes, and former COO Ramesh “Sunny” Balwani deceived investors into believing that the company’s portable blood analyzer could co…

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April 3, 2017 Intelligence: Late Breaking Lab News

For readers with a continuing interest in Theranos, the latest development at the troubled lab testing company involves an offer by Founder and CEO, Elizabeth Holmes, to its current shareholders. Various news outlets report that, for existing shareholders who agree not to sue Therano…

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Theranos Lays Off More Staff, Voids More Lab Test Results

ONCE AGAIN, the controversial lab testing company, Theranos, Inc., found itself the subject of negative news stories. In recent weeks, The Wall Street Journal reported that the beleaguered lab testing company in Palo Alto, Calif., laid off 155 staffers, voided more laboratory test results, a…

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Much Disruption for Labs In 2016’s Top 10 Stories

CEO SUMMARY: Within THE DARK REPORT’S list of the Top 10 Lab Industry Stories for 2016 is one story of disruption that might have been one story of disruption about to happen. The disintegration of Theranos during 2016 is the big story about a self-proclaimed disruptor of the lab indust…

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Theranos Ends Patient Testing, Sued for Deceiving Investors

IN THE EARLY 1960S, the great bluesman Albert King wrote, “Born Under a Bad Sign,” which contained the unforgettable lyric, “If it wasn’t for bad luck, I wouldn’t have no luck at all.” That lyric almost describes what’s happened to Theranos Inc. since October 2015. Al…

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Elizabeth Holmes of Theranos Speaks at AACC To Skeptical PhDs, Pathologists, and Press

CEO SUMMARY: Elizabeth Holmes, Founder and CEO of Theranos, Inc., was given the ideal platform by AACC to show the science behind her lab company’s much-touted diagnostic technologies. But in a surprise to the assembled audience, Holmes, accompanied by three PhDs on her team, chose to d…

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Score for Theranos after AACC: Fail.

This is an excerpt from a 1,600-word article in the August 15 issue of THE DARK REPORT. The complete article is available to paid members of the Dark Intelligence Group. …

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Theranos Now Scrambling To Save What It Can

CEO SUMMARY: On July 7, CMS imposed severe sanctions on Theranos for CLIA violations. Included is a two-year ban on owning and operating a clinical laboratory for Theranos, CEO Elizabeth Holmes, the former COO, and the former medical director. Theranos appears to be pivoting away from a c…

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CMS CLIA Sanction Letter Sent To Theranos Raises Questions

CITING PRACTICES THAT JEOPARDIZE PATIENT SAFETY, the federal Centers for Medicare & Medicaid Services decided earlier this month to revoke the CLIA certificate that it granted to Theranos Inc. to operate a clinical laboratory in Newark, Calif., and to ban the lab…

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What will the future hold for Theranos?

This is an excerpt from a 1,900-word article in the July 25 issue of THE DARK REPORT. The complete article is available to paid members of the Dark Intelligence Group. …

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