From $10bn to prison: The rise and fall of Theranos founder Elizabeth Holmes

Theranos founder Elizabeth Holmes, 37, faced four counts of defrauding investors. The charges carry a maximum prison term of 20 years each.

for Tv47 Digital January 09, 2022, 08:54 AM
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Theranos headquarters. Elizabeth Holmes has been found guilty of fraud. TV47
The company's offices in Silicon Valley, California, during its glory days. The company sprinted to a valuation of $30m in only an year. PHOTO/COURTESY

2010 - Theranos raises a further $45 million in funding, reaching a valuation of $1 billion.

2011 - Theranos begins attracting high-profile board members, including two former U.S. secretaries of state, George Shultz and Henry Kissinger.

2012 - The company moves to the former Facebook headquarters in Palo Alto, California.

2013 - Theranos begins promoting its technology, claiming to be able to run a wide range of tests on a single drop of blood using a machine called the Edison, and enters into a partnership with Walgreens Boots Alliance.

2014 - Having raised more than $400 million, the company is valued at more than $9 billion. Holmes is recognized by Forbes as a billionaire, thanks to her stake in the company.

February 2015 - An article in the Journal of the American Medical Association criticizes Theranos for failing to publish any of its research in peer-reviewed journals.

July 2015 - Theranos wins U.S. Food and Drug Administration approval for a test to detect the herpes simplex 1 virus.

October 2015 - The Wall Street Journal reports that Theranos uses its technology for only a small number of its tests, and that employees doubt their accuracy. The FDA subsequently releases a finding that the company used unapproved devices for tests.

January 2016 - The U.S. Centers for Medicare & Medicaid Services (CMS) releases a report that one of the company's facilities presents "jeopardy to patient health and safety." The agency said an inspection revealed that the facility did not meet its own quality-control standards, including not properly calibrating equipment.

June 2016 - Walgreens ends its relationship with Theranos.

October 2016 - Partner Fund Management, which invested nearly $100 million in Theranos, sues the company for securities fraud, claiming it lied about its technology to secure the investment. The case is later settled.

April 2017 - Theranos reaches a deal with CMS barring it from the blood-testing business for two years.

March 2018 - The U.S. Securities and Exchange Commission charges Theranos, Holmes and Balwani with securities fraud. Holmes is stripped of her stake in and control of the company.

Elizabeth Holmes. From wunderkind to perpetrator of the "largest corporate fraud since Enron." TV47

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