Theranos’ founder Elizabeth Holmes has dominated the news for almost ten years because of her not-entirely groundbreaking blood-testing business. Even though she was formerly seen as a promising young businesswoman, a devastating Wall Street Journal exposé in 2015 exposed that her blood-testing equipment produced false results, giving thousands of individuals false reports.
After resigning from her position as Theranos CEO in 2018, In January 2022, Holmes was held responsible for four fraud charges. On November 18, she will receive her punishment. With Amanda Seyfried, whose portrayal of Holmes garnered an Emmy, the narrative was fictionalised by streaming service Hulu in “The Dropout,” which debuted in March 2022.
Who Is Elizabeth Holmes?
Elizabeth Holmes’ adventure began at Stanford University in 2002. Before realising she was terrified of needles and blood, she intended to pursue a career in medicine. According to Business Insider, she was motivated to seek a patent by her trepidation for a wearable medical device that could track a patient’s blood and deliver medication as necessary. Holmes dropped out of Stanford two years later and launched Theranos from her basement.
Using just one drop of blood, Holmes claimed to have a patented device that could identify diseases like cancer. Theranos was discovered to be utilising third-party equipment, but she also misled investors into thinking the company offered more than 200 diagnostic procedures, according to BBC.
She was successful in attracting almost $700 million in investments from well-known figures, including Oracle founder Larry Ellison, based on her claims. She could attract investors’ money without disclosing how the technology operated by highlighting the value of secrecy.
They ran the business under the erroneous belief that the technology worked, introducing their blood testing device, the Edison, along with COO Sunny Sunny Balwani, who it was later discovered had been secretly dating Holmes throughout their time working together.
According to CNN, they continued to raise millions of dollars through partnerships with important healthcare companies, including Walgreens, where they intended to open Theranos Wellness Centers across the country, and Safeway, where they signed a $350 million agreement.
What Happened to Theranos?
Holmes attempted a return after Theranos’ lab was shut down with a different product called the “MiniLab,” which would allow her to get over the CMS’s restrictions by selling the gadget rather than using it in its labs, according to CNN. The SEC then accused Holmes and Balwani, who departed the company in 2016, of “massive fraud,” according to Business Insider, in March 2018.
Given that Theranos was a privately held company, Holmes was permitted to continue in his role as CEO but was required to relinquish financial and voting control of the business in exchange for which he also had to pay a $500,000 fine and surrender $18.9 million in Theranos stock. Theranos revealed Holmes would be leaving her position as CEO on the same day she was charged. After 15 years in business, the company announced in September 2018 that it would be closing.
Where Is Elizabeth Holmes Now?
Sunny Balwani has disputed the allegations of abuse that Holmes made against him during her trial. According to CNN, she was convicted on four of the eleven federal charges against her in January 2022. Despite being out on bail for $500,000, Holmes faces up to 20 years in jail, a $250,000 fine, and restitution for each offence.
According to The Guardian, A 15-year term is what the prosecution is seeking as $800 million in reparations because they believe these terms will “represent the nature of the charges, provide for just punishment for the offences, and deter Holmes and others.”
What Is Elizabeth Holmes’ Net Worth?
With a net worth of $4.5 billion at the age of 30, Forbes recognised Holmes as the world’s youngest self-made billionaire. But in 2016, after several allegations against Holmes surfaced, the publication revised its assessment of the number. When she only owned 50% of Theranos stock and had a slew of investors to repay, the outlet calculated her net worth to be zero, even though experts at the time thought $800 million was a more reasonable estimate.
In 2019, Holmes wed William “Billy” Evans, the inheritor of the Evans Hotel Group, which, according to Business Insider, was founded in 1953 by his grandparents and currently owns three properties in San Diego.
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