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Bailey McCann, Opalesque New York: The SEC has charged Elizabeth Holmes, founder and CEO of Theranos and its former President Ramesh "Sunny" Balwani with raising more than $700 million from investors through an elaborate, years-long fraud in which they exaggerated or made false statements about the company's technology, business, and financial performance.
Theranos, a privately held health startup claimed that it could provide diagnostic tests from a few drops of blood at lower prices and with faster reporting than traditional methods. In 2015, the Wall Street Journal's John Carreyrou started covering the company, uncovering many questionable practices and technology failures - issues which also showed up in the SEC's complaint.
The complaints allege that Theranos, Holmes, and Balwani made numerous false and misleading statements in investor presentations, product demonstrations, and media articles by which they deceived investors into believing that its key product - a portable blood analyzer - could conduct comprehensive blood tests from finger drops of blood, revolutionizing the blood testing industry. In truth, according to the SEC's complaint, Theranos' proprietary analyzer could complete only a small number of tests, and the company conducted the vast majority of patient tests on modified and industry-standard commercial an...................... To view our full article Click here
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