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Theranos ceased for fooling investors with a blood-testing device that never worked

04-Jan-2022

Key points from article :

Theranos founder Elizabeth Holmes has been convicted of defrauding investors after a months-long landmark trial in California.

Holmes claimed her diagnostics machines could test hundreds of diseases with only a few drops of blood.

Secretly relied on commercially available machines to run the tests.

Theranos, valued at $9bn, was once the darling of biotech and Silicon Valley.

Holmes was able to raise more than $900m from billionaires.

In 2015, a Wall Street Journal investigation reported that its core blood-testing technology did not work.

Jurors found Holmes guilty of conspiracy to commit fraud against investors and three charges of wire fraud.

No date confirmed yet for sentencing and a further hearing scheduled next week.

Theranos officially ceased operations in 2018 following the scandal.

The verdict sends a clear message to Silicon Valley founders - there are consequences when you say things to investors that aren't true.

Founder convicted of wire fraud and sentenced to several years in prison

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