Theranos was created in 2008 which ended with the Elizabeth Holmes Theranos lie exposed for deceptive blood work. At age 19, she dropped out of Stanford University and started a company that would revolutionize blood testing. She has been compared to Bill Gates and Steve Jobs as a celebrated tech entrepreneur, now she is considered one of the “World’s Most Disappointing Leaders”. It was said that Elizabeth Holmes hero was Steve Jobs and created a world to where she was Jobs for a little while. She was supported and cheered on to be successful in the technology field. Elizabeth Holmes was a female billionaire.
Elizabeth Holmes created the Edison
Elizabeth Holmes boasted that her invention could take a pin prick of blood and perform 100’s of laboratory test. She stated that it “…was the most important thing humanity has ever built” Her company, Theranos was worth 10 Billion dollars at it’s most popular time. Theranos was a name created from the words “Therapy” and “Diagnostics”. She created a small tester called the “Edison”, “The iPod of healthcare” that would perform hundreds of test on blood can cut down the 60 billion dollar lab testing that was majorly serviced by LabCorp and Quest Diagnostics. Elizabeth Holmes sold her invention boasting that her blood test will cost fractions.
Elizabeth Holmes’ deception comes to an end
March of this year, Elizabeth Holmes and Ramesh “Sunny” Balwani, the CEO of Theranos and Holmes secret boyfriend, were criminally charged with perpetrating a multi-million dollar scheme that deceived investors, doctors and patients. SEC called it “massive fraud”. Elizabeth Holmes settled without admitting fault and paid a 500 thousand dollar fine. Sonny is fighting SEC allegations, called them unwarranted. Investors Rupert Murdock and Betsy Devos both Lost more than 100 Million. 2013 Partnered with Walgreens to place an Edison machine in every store. But it was reported that the machine was faulty. They couldn’t complete any test successfully. Walgreens sued Theranos, but ended up settling for less than a quarter of their 140 million investment. Elizabeth Holmes had raised 9 million dollars from investors and a portion of it was returned.
Theranos reported that their product was validated by FDA, it was deployed by the United States on battlefield in Pakestan. And was in collaboration with John Hopkins. John Hopkins admitted that they did not have any dealings with Theranos. It was discovered that the test data compiled for the FDA was falsified. Employees at Theranos were pressed into changing data and in some cases removing data. One employee, Doug Matje went to his boss repeatedly with concerns about falsified data and test result problems. Doug Matje joined Theronos in 2012 and has a Doctorite in biochemistry medicine. His job was to adapt blood tests for the Edison, but after 1 1/2 years Matje quit. He talked to Sunny Balwani and “decided he no longer wanted to be there” .
Employees were watched closely and required to sign nondisclosure agreement. They were threatened by Lawyers and private investigators. George P Schultz grandson Tyler Schultz joined Theranos after getting a degree from Standford University. Sept 2013 but in 2014 he quit. Before Tyler resigned he sent an email to Elizabeth Holmes stating his concerns. Sunny Balwani responded stating that Tyler was “ignorant,arrogant and patronizing, reckless, lacking the basic understanding of math, science and statistics and if he had any other last name, he would have already been accountable to the strongest extent…” Tyler Schultz used a fake name to alert New York State investigators. He provided scenarios and ask if things were OK. They said “no, this is cheating.”
The Theranos and Elizabeth Holmes Lie Unfolds
February 2015 John Carreyrou, two-time Pulitzer Prize-winning investigative French-American journalist with The Wall Street Journal, initiated a secret months-long investigation of Theranos after he received a tip from a medical expert who thought the blood testing device looked suspicious John Carreyrou was quoted as saying, “this is one of the most epic failures in Corporate Governance in the annuals of America capitalism.” Clients did nothing to verify that Elizabeth’s claims were true. John Carryroe wrote his first article in October 2015 and stated that Theranos did less than 10% of this testing on Edison Machines.
Soon after, there were surprise inspections from the FDA, 1 million test results were invalidated. FDA shutdown the Theranos laboratory. It was found that because the product was not approved, Theranos was responsible for unauthorized medical experiments when they were using it in Walgreens. Elizabeth lied to public, patients, and regulators. She raised 100’s of millions on claims of a technology that was ready and already commercially rolled out.
Currently, Theranos reported they had run out of money and are closing their doors.
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