Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Theranos, CEO Holmes, and Former President Balwani Charged with Fraud

sec.gov

Post reply on HN
Print view View original

1–10 of 557 posts

Re: Theranos, CEO Holmes, and Former President Balwani Charged with Fraud

#2

Post by nathanaldensr »

Theranos and Holmes have agreed to settle the fraud charges levied against them. Holmes agreed to pay a $500,000 penalty, be barred from serving as an officer or director of a public company for 10 years, return the remaining 18.9 million shares that she obtained during the fraud, and relinquish her voting control of Theranos by converting her super-majority Theranos Class B Common shares to Class A Common shares. Due to the company’s liquidation preference, if Theranos is acquired or is otherwise liquidated, Holmes would not profit from her ownership until – assuming redemption of certain warrants – over $750 million is returned to defrauded investors and other preferred shareholders. The settlements with Theranos and Holmes are subject to court approval.

Someone help me out: Does this settlement really make the affected parties feel the pain? Does it discourage other companies from attempting the same thing? Given the scale of the fraud, shouldn't these two simply be in prison right now?

Re: Theranos, CEO Holmes, and Former President Balwani Charged with Fraud

#4

Post by hkmurakami »

>Theranos and Holmes have agreed to settle the fraud charges levied against them. Holmes agreed to pay a $500,000 penalty, be barred from serving as an officer or director of a public company for 10 years, return the remaining 18.9 million shares that she obtained during the fraud, and relinquish her voting control of Theranos by converting her super-majority Theranos Class B Common shares to Class A Common shares. Due to the company’s liquidation preference, if Theranos is acquired or is otherwise liquidated, Holmes would not profit from her ownership until – assuming redemption of certain warrants – over $750 million is returned to defrauded investors and other preferred shareholders.

3 years ago, I never would have thought that such an outcome would actually happen.

Re: Theranos, CEO Holmes, and Former President Balwani Charged with Fraud

#8

Post by daxorid »

nathanaldensr wrote: post #2

Theranos and Holmes have agreed to settle the fraud charges levied against them. Holmes agreed to pay a $500,000 penalty, be barred from serving as an officer or director of a public company for 10 years, return the remaining 18.9 million shares that she obtained during the fraud, and relinquish her voting control of Theranos by converting her super-majority Theranos Class B Common shares to Class A Common shares. Du…

> shouldn't these two simply be in prison right now?

Compare and contrast with Shkreli sentencing. Some animals are more equal than others.

Re: Theranos, CEO Holmes, and Former President Balwani Charged with Fraud

#10

Post by charlesdm »

megadeth wrote: post #7

Won’t see a day of jail time while Shkrelli gets 7 years.

Martin Shkreli was, honest to god, an idiot. He got several chances to "kiss the ring" and show remorse, and what did he do? He put some extra oil on the fire and kept acting like an idiot until the very last moment. Sometimes you need to realise when to fold and suck it up.
Post reply on HN