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Thursday, March 28, 2024

Theranos CEO “Devastated” In TV Interview, Just Hours Before News Of Criminal, SEC Probe

I think it's pretty much game over now…

Courtesy of ZeroHedge. View original post here.

Update: it appears that Holmes will be even more "devastated" because as the WSJ reported moments ago federal prosecutors have launched a criminal investigation into whether Theranos Inc. misled investors about the state of its technology and operations, while the SEC is also probing the company at the same time. 

Walgreens Boots Alliance Inc. and the New York State Department of Health have received subpoenas in recent weeks seeking documents and testimony about representations made to them by the Palo Alto, Calif., blood-testing company, some of the people said.

People familiar with the matter said the subpoenas seek broad information about how Theranos described its technologies and the progress it was making developing those technologies.  Investigators are also examining whether Theranos misled government officials, which can be a crime under federal law, some of the people said.

In addition to the criminal probe, the Securities and Exchange Commission is examining whether Theranos made deceptive statements to investors when it solicited funding, according to people familiar with the matter. Theranos was valued at $9 billion in a funding round in 2014 and the majority stake of Elizabeth Holmes, the startup’s founder and chief executive, at more than half that.

* * *

Investigators are also examining whether Theranos misled government officials, which can be a crime under federal law, some of the people said.

Furthermore, given the septagenerian elitist board, in an ironic twist, Theranos claims to have its own 'standards' for testing its own proficiency (like self-regulating banks or Valeant's or SunEdision's self-investigation?) – which it, surprise surprise, passed:

Theranos said it uses an alternative process for proficiency testing. The process “has been disclosed to and discussed with regulators,” said Ms. Buchanan, the Theranos spokeswoman. “Theranos’ proficiency testing process meets the regulatory requirements.”

Now would be the perfect time for Holmes to cash in on any leftover favors from the Clinton Foundation… if she still has any left, of course. Because otherwise "billionaire" Elizabeth's fall from grace is about to be complete, and she may well end up in prison.

* * *

Theranos' CEO (for now) Elizabeth Holmes "childhood dreams of revolutionizing healthcare" (her words not ours) appear to have crashed on the shores of an ugly reality, as we detailed previously. In her first public appearance since regulators suggested she be banned for two years from the industry, the billion-dollar-baby tells Maria Shriver she is "devastated" – though it is unclear if the shock is more at being busted for her failed "secret" testing technique?

Just six months ago Holmes was the youngest self-made female billionaire in the world… today, not so much. We wonder if she will be heading back to Stanford to finish that degree?

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