06 September 2018_campuscad
The Silicon Valley startup, Theranos is shutting down amid accusations, Investigations, lawsuits, fraud cases and misleading innovations of medical science.
Elizabeth Holmes, founder of the Theranos, once called as “The Next Steve Jobs” by some of the popular magazines of the world. A Stanford dropout started Theranos a biotech startup, at the age of 19 and received funding from all famous and top leaders from all over the world.
From the founder of Oracle, Larry Ellison who invested more than $700 million in Theranos including Founder of Walmart Betsy DeVos, Elizabeth Holmes tricked a number of high profile US businessmen and politician including Former US president Barack Obama, Vice president Joe Biden.
What Theranos Specialty?
Theranos claimed, it has invented unique breakthrough technology to test the blood, which by a single finger prick will give you result in a number of different diseases. Its methodology is far superior and quicker than traditional technology, the company claimed in the past.
But the story broke out in 2015 when the Wall street Journal covered the article, how Theranos blood testing results were not as they claimed. Theranos using the machinery to test and showcase the blood result from the rivals. They tried to modify the existing blood testing devices.
Theranos once valued at $10 billion and half of the stake owned by Elizabeth Holmes now has zero valuation and Investors lost almost $1 billion. Now they do not have money to pay back (Only $5 million in the account) to the investors.
Elizabeth Holmes, along with its partner Ramesh Balwani, were charged with wire frauds and fined up to $3.7 million each and may go behind the bar almost for 20 years.
Holmes is barred from serving as an officer or director of any public company for next 10 years.
Current CEO David Taylor sent emails to the investors, We are out of time and Theranos dissolving started. Theranos Intellectual Property (IP) was sold to Fortress group who once the major investors of Theranos.
And Now the next Holly wood flick coming out “Bad Blood: Secrets and Lies in a Silicon Valley Startup,”
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