Elizabeth Holmes’ Theranos Fraud Case

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Overview

Elizabeth Holmes’ Theranos Fraud Case refers to an ongoing controversy regarding Elizabeth Holmes, the founder and former CEO of Theranos, a medical technology company. In 2018, the United States Securities and Exchange Commission charged Holmes with massive fraud for making false claims to investors of blood analysis devices. She has settled some of the charges but pleaded not guilty to others.

Background

In 2003, Elizabeth Holmes founded Theranos, a medical technology company that claimed to have devised a machine that could run hundreds of blood analysis tests in seconds from just a drop of blood. Over the next decade, the company continued to claim that it was working on a device that could run over 1,000 tests from just a drop of blood, generating support from wealthy and power investors such as former U.S. Secretary of State and National Security Advisor Henry Kissinger and former Secretary of Defense General James Mattis. However, following a 2015 Wall Street Journal exposé, many began to question whether Theranos actually had and/or used the technology they purported.

On March 14th, 2018, the SEC charged Holmes and former Theranos president Ramesh “Sunny” Balwani with “massive fraud.” The complaint charges them with “deceiving investors by making it appear as if Theranos had successfully developed a commercially-ready portable blood analyzer” why performing these tests on “commercial analyzers that were manufactured by others.”

Steven Peikin, the SEC’s co-director of enforcement, said, “We allege that after years of development, Theranos was able to process just a small number of blood tests upon its proprietary analyzer, and instead conducted the vast majority of its patients’ tests on modified commercial analyzers that were manufactured by others.”

On June 15th, 2018, Holmes and Balwani were indicted on federal wire fraud charges.

On September 4th, the company shut down, ceasing production and laying off all staff members.

Developments

Holmes’ Response

In March, Holmes settled the allegations, agreeing to pay the SEC a $500,000 fine and to return the money to investors. Additionally, Holmes forfeited 19 million shares of stock and has been barred from taking a company leadership role for 10 years.

She has pleaded not guilty to the wire fraud charges.

Online Reaction

The charges against Holmes and Theranos became a popular topic of conversation on the website Reddit. On January 24th, 2019, Redditor tfresca posted a video from ABC entitled “Ex-Theranos CEO Elizabeth Holmes says ‘I don’t know’ 600-plus times in never-before-broadcast deposition tapes.” The post received more than 33,000 points (94% upvoted) and 2,800 comments in less than four months. The story was also discussed in the /r/The_Donald, /r/IAmA, /r/Documentaries and more.

On March 1st, 2019, the YouTube channel ColdFusion published the video “Theranos – Silicon Valley’s Greatest Disaster.” The post received more than 1 million views in less than one month (shown below).

The Inventor: Out for Blood in Silicon Valley

On January 24th, 2019, HBO premiered the film The Inventor: Out for Blood in Silicon Valley, a documentary about Holmes and Theranos (trailer below).

The film received mostly positive reviews from critics. On the movie review aggregator website Rotten Tomatoes, the film received a fresh rating of 74% (based on 34 reviews). In their critical consensus, the site wrote, “Alex Gibey’s The Inventor declines to outright condemn the actions by Theranos founder Elizabeth Holmes, but instead provides a comprehensive overview of the scandal that allows viewers to mull over its implications towards the broader Silicon Valley.”

Bitcoin Tie

Following the film’s release, many online joked about Theranos investor Tim Draper’s tie, which featured numerous Bitcoin logos on the front design (examples below).


Favorite part of watching #TheInventor so far is this early investor wearing a bitcoin tie in his interview. 1:26 AM-19 Mar 2019 So what you're telling me is that this guy in the purple Bitcoin tie invested in Theranos without understanding what Theranos actually did? 2:12 AM - 19 Mar 2019 There is a real all-star team of dildos in this new HBO Theranos doc, and plenty of opportunities to say things like "Whoa, is that dude wearing a UKIP tie? Oh no, it's just a Bitcoin tie" 05 Also btw Holmes pronounces nuclear as "nuke-yu-ler" UKIP UK INDEPENDENCE 12:55 AM-19 Mar 2019

Search Interest

External References

Source : https://knowyourmeme.com/memes/events/elizabeth-holmes-theranos-fraud-case

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