Theranos founder Elizabeth Holmes is on trial today for defrauding both customers and investors, reigniting conversation about the company and the impact it’s had on investment in the health-technology space.
Holmes’s company developed a machine called Edison, which she claimed could run a myriad of diagnostic tests using a mere pinprick’s worth of blood or a much smaller volume than is typical. However, a 2015 report from The Wall Street Journal found that the company was only using its own technology for a fraction of the tests it offered and that the Edison machine did not deliver consistently accurate results. Holmes now faces 10 counts of wire fraud and two counts of conspiracy to commit fraud; she is pleading not guilty.
When Holmes was charged with fraud in 2018, it sent shock waves through the investment community. Theranos had raised $700 million from investors and was valued at $9 billion. But despite the Theranos scandal, venture capitalists have continued to pour…
Read More…
Source : fastcompany.com
Source link
