Theranos Is Subject of Criminal Probe by U.S
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Re: Theranos Is Subject of Criminal Probe by U.S
#2Why is the SEC involved in a failure-to-quality-control issue? Were investors materially misled?
Re: Theranos Is Subject of Criminal Probe by U.S
#3Why is the SEC involved in a failure-to-quality-control issue? Were investors materially misled?
Yes, word on the street is that they are being investigated by the SEC for misleading their investors.
This very sparse report leads with the same text and twitter is full of news sources "reporting" the same thing.
I have a feeling that it's going to be a bad time for Theranos employee's and investors over the next few months. It's going to be much worse for a few of their executives.
Re: Theranos Is Subject of Criminal Probe by U.S
#4When I first read this headline I was thinking "Uh oh, Theranos must have very badly handled its interactions with FDA". But this is apparently the SEC investigating the company.
Does anyone know how often the SEC investigates a private company with a product that's still essentially in beta testing?
Re: Theranos Is Subject of Criminal Probe by U.S
#5When I first read this headline I was thinking "Uh oh, Theranos must have very badly handled its interactions with FDA". But this is apparently the SEC investigating the company. Does anyone know how often the SEC investigates a private company with a product that's still essentially in beta testing?
> Does anyone know how often the SEC investigates a private company with a product that's still essentially in beta testing?
Apparently at some point before a company takes $400m in investment on a fraudulent basis.
Re: Theranos Is Subject of Criminal Probe by U.S
#6When I first read this headline I was thinking "Uh oh, Theranos must have very badly handled its interactions with FDA". But this is apparently the SEC investigating the company. Does anyone know how often the SEC investigates a private company with a product that's still essentially in beta testing?
They will see if there is something like a material misrepresentation.
Re: Theranos Is Subject of Criminal Probe by U.S
#7When I first read this headline I was thinking "Uh oh, Theranos must have very badly handled its interactions with FDA". But this is apparently the SEC investigating the company. Does anyone know how often the SEC investigates a private company with a product that's still essentially in beta testing?
The cynical point of view is that some wealthy investors feel like they were mislead and that is the only reason the SEC gives a hoot.
Re: Theranos Is Subject of Criminal Probe by U.S
#8When I first read this headline I was thinking "Uh oh, Theranos must have very badly handled its interactions with FDA". But this is apparently the SEC investigating the company. Does anyone know how often the SEC investigates a private company with a product that's still essentially in beta testing?
Well, if it can be shown that they lied or omitted material information in the course of soliciting equity investments, that's a Rule 10b-5 violation, the SEC's big club. The fact that Theranos is a private company is immaterial, as is the possibility that none of its investors may have complained.
Re: Theranos Is Subject of Criminal Probe by U.S
#9Man, the shoe fell really, really quickly. Also - huge congratulations to the reporting team of the WSJ, that did an incredible job of unconvering this story back when Theranos was still considered a golden goose. John Carreyrou in particular did some exceptional reporting.
Re: Theranos Is Subject of Criminal Probe by U.S
#10I don't say this often, but fuck Theranos.