The Journal's reporting sparked investigations into Theranos from numerous federal agencies, including the FDA and the SEC. Holmes' empire began to collapse in 2015, when the Wall Street Journal published a damning exposé revealing Theranos machines could only perform a small fraction of the tests advertised and still produced inaccurate results for those, and the company was instead secretly using competitors' machines already on the market. Theranos was hailed as having the power to revolutionize healthcare and had an estimated $9 billion valuation at its peak. Holmes graced countless magazine covers and awards lists and was proclaimed a visionary, becoming the world's youngest self-made female billionaire, with a net worth of approximately $4.5 billion. During her meteoric rise to fame, she brought on former federal government officials, US senators, billionaire CEOs, and even an ex-CDC chief as investors and board members. At 19, Holmes dropped out of Stanford University to build Theranos, a blood-testing startup touted to be able to test for hundreds of diseases with a single drop of blood. The sentencing is the latest development in a years-long scandal that has gripped Silicon Valley. CNN Sans ™ & © 2016 Cable News Network.Account icon An icon in the shape of a person's head and shoulders. Market holidays and trading hours provided by Copp Clark Limited. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC and/or its affiliates. Standard & Poor’s and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile: Certain market data is the property of Chicago Mercantile Exchange Inc. US market indices are shown in real time, except for the S&P 500 which is refreshed every two minutes. Your CNN account Log in to your CNN account Like Holmes, Balwani’s legal team delayed the start of his prison sentence by roughly a month with an appeal.īalwani reported to prison last week to serve out his nearly 13-year sentence. Holmes’ ex-boyfriend and former COO Ramesh “Sunny” Balwani was indicted alongside Holmes and convicted of fraud in a separate trial. It also came to light that Theranos was relying on third-party manufactured devices from traditional blood testing companies rather than its own technology. Her company began to unravel after a Wall Street Journal investigation in 2015 reported that Theranos had only ever performed roughly a dozen of the hundreds of tests it offered using its proprietary technology, and with questionable accuracy. Theranos raised $945 million from an impressive list of investors and was valued at some $9 billion at its peak – making Holmes a paper billionaire. Holmes dropped out of Stanford at the age of 19 to focus full-time on Theranos, the health tech startup which claimed to have invented technology that could accurately test for a range of conditions using just a few drops of blood. As a result, Holmes can remain free on bail while the latest appeal is considered by the court, as per the court’s rules. On Tuesday, however, Holmes’ legal team filed an appeal of the judge’s decision. ![]() David Paul Morris/Bloomberg/Getty Imagesįormer Theranos COO Ramesh 'Sunny' Balwani reports to prison, attorney says Balwani, ex-boyfriend of Theranos founder Elizabeth Holmes, was found guilty of all charges against him for his role in the collapse of the $9 billion blood-testing startup. Sunny Balwani, former president of Theranos Inc., center, arrives at federal court in San Jose, California, US, on Wednesday, Dec.
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