Theranos, Holmes and former company president Sunny Balwani were charged with fraud by the SEC in 2018.
After several years of struggle, lawsuits, and sanctions from CMS, what remained of the company was dissolved on September 4, 2018. By June 2016, it was estimated that Holmes's personal net worth had dropped from $4.5 billion to virtually nothing. Securities and Exchange Commission (SEC), the Centers for Medicare and Medicaid Services (CMS), state attorneys general, former business partners, patients and others. The company faced a string of legal and commercial challenges from medical authorities, investors, the U.S. Ī turning point came in 2015, when medical research professor John Ioannidis, and later Eleftherios Diamandis, along with investigative journalist John Carreyrou of The Wall Street Journal, questioned the validity of Theranos's technology. These claims were later proven to be false.
The company claimed that it had devised blood tests that required very small amounts of blood and that could be performed rapidly and accurately, all using compact automated devices which the company had developed. Founded in 2003 by 19-year-old Elizabeth Holmes, Theranos raised more than US$700 million from venture capitalists and private investors, resulting in a $10 billion valuation at its peak in 20. oʊ s/) was an American privately held corporation that was touted as a breakthrough health technology company. at the Wayback Machine (archived August 28, 2018)
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