The Theranos trial is live, and we have to say … it’s pretty juicy.
The ‘breakthrough’ medical company, valued at over $10 billion during its peak, is being prosecuted for lying to both patients and investors. Prosecution claims that Elizabeth Holmes, Theranos’ founder, knowingly produced faulty technology which put patients at risk and defrauded investors. 😬
Theranos’ patented technology involves small machines which rapidly generate blood tests and require tiny amounts of blood — a breakthrough in both blood testing and cost efficiency. In reality, though, one patient received a faulty negative pregnancy test from Theranos; the test illegitimately prompted her to change her medication. Several other patients also received faulty results.
Holmes’ attorney, Lance Wade, claimed Theranos was an “innovative company that had proprietary technology and failed because of complicated reasons not related to fraud.” Theranos was awarded 176 patents for its blood-testing IP.
Prosecutor Robert Leach, however, asserted “[Holmes] skewed the medical decisions of patients and she put them at risk.” Regarding Theranos’ troubled financial situation, high monthly burn rate, and Holmes’ personal spending habits, Leach said “Out of time, out of money, Elizabeth Holmes decided to lie [to investors].”
Allegedly, Holmes claimed Theranos would make $100-200 million a year to investors when $100,000 was far more realistic. Yikes. We’ll be keeping up with this blockbuster trial. 🕵️♂️
Follow the WSJ’s live coverage of the trial here.