Odd coincidence (or maybe not) that the father of the founder, Elizabeth Holmes, worked at Enron (per wikipedia).
Major Investor Sues Theranos
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Re: Major Investor Sues Theranos
#42Not that I'm surprised that the firm sued but I wonder what their end goal is and how they're planning on getting any sort of meaningful settlement from a company that's currently on fire. This seems mostly a face-saving measure.
Theranos raised $348.5M Private Equity on March 1, 2015. There is probably still cash on the balance sheet. Maybe by filing a suit they hope that the company will be liquidated and to be at the front of the line when the proceeds get split.
Honest question: how does this not trigger a "stampede for the exit" including lawsuits for everyone else who wants to get their money back?
Re: Major Investor Sues Theranos
#43I have a feeling that this level of lying is much more pervasive in startups than people realize.
I think humanity is literally evolving to lie and cheat at a biological level.
Soon, universities will have courses in 'Mastering the art of cheating and lying'.
Re: Major Investor Sues Theranos
#44Am I wrong if feeling no sympathy for a Hedge fund getting bilked? Like it's nice that for once it's not the "little guy" getting screwed over.
It would suck if you made financial decisions based on falsified documents.
How hard do you have to lie in order to pass the due diligence required for a $100m investment?
Re: Major Investor Sues Theranos
#45Not that I'm surprised that the firm sued but I wonder what their end goal is and how they're planning on getting any sort of meaningful settlement from a company that's currently on fire. This seems mostly a face-saving measure.
I think they started off with a vision and assuredness that they would succeed, but they never stopped to consider the possibility they might not. At some point maybe they did, but Theranos and Holmes has decided it doesn't matter. Press ahead. Success is inevitable.
Re: Major Investor Sues Theranos
#46It costs $21.60 to "search" for this case at the Delaware Court of Chancery, even if you know the case number. And another $40.00 to download a single document. The complaint is marked as confidential and is not available.
Lexis-Nexis owns the site that maintains the court's entire docket.
Re: Major Investor Sues Theranos
#47Re: Major Investor Sues Theranos
#48Am I wrong if feeling no sympathy for a Hedge fund getting bilked? Like it's nice that for once it's not the "little guy" getting screwed over.
Hedge funds frequently have charitable foundations and pension funds as limited partners. Unless the hedge fund is just a family office, there's a high probability that the "little guy" will be impacted, somewhere. I can't tell you if your schadenfreude over hedge funds losing money is right or wrong, because that's based on normative values. But I'd encourage you to adjust your understanding of the financial dynamic…
But if the Theranos deal panned out, who would have benefited from the investment by the hedgefund?
Would it be the "little guy?" Or would it be the fund managers, and all the "insiders."
It goes hand and hand with the notion that the system is rigged.
Re: Major Investor Sues Theranos
#49Earlier quoted context omitted.
Theranos raised $348.5M Private Equity on March 1, 2015. There is probably still cash on the balance sheet. Maybe by filing a suit they hope that the company will be liquidated and to be at the front of the line when the proceeds get split.
Honest question: how does this not trigger a "stampede for the exit" including lawsuits for everyone else who wants to get their money back?
Probably. I'd imagine that's why Theranos will insist part of the deal is that the exact terms will never be disclosed.
Re: Major Investor Sues Theranos
#50Discovery on this will be interesting to say the least
Will discovery be made public?