Like I've mentioned before, Theranos needs to shut down. The technology doesn't work (and likely it never will since blood constituents are not evenly distributed at small volumes) and its investors and executives are complicit in fraud. While half-completed/non-working solutions are fine in software world and with consumer electronics, a misreading or missed reading of blood parts can easily cost the health or life of a person. I'll be glad to see the SEC/FDA put an end to this.
Theranos Is Subject of Criminal Probe by U.S
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Re: Theranos Is Subject of Criminal Probe by U.S
#12Pump and dump couldn't dump!
Re: Theranos Is Subject of Criminal Probe by U.S
#13When 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 criminal probe is separate from the SEC actions -- The SEC can only refer criminal cases to the DOJ, they have no criminal enforcement arm themselves.[1]
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.
So in addition to the criminal probe instigated by the DOJ, the SEC is investigating for securities issues.
[1] - https://www.sec.gov/about/offices/oia/oia_enforce/overviewen...
Re: Theranos Is Subject of Criminal Probe by U.S
#14When 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 SEC is getting more aggressive about regulating large pseudo-public companies that haven't had a formal IPO, but which have many "qualified" investors.[1] Mutual funds now invest in these companies, which means ordinary investors are at risk.
The SEC chair on "unicorns": "It is axiomatic that all private and public securities transactions, no matter the sophistication of the parties, must be free from fraud. Exchange Act Section 10(b) and Rule 10b-5 apply to all companies and we must be vigorous in ferreting out and punishing wrongdoers wherever they operate. In the unicorn context, there is a worry that the tail may wag the horn, so to speak, on valuation disclosures. The concern is whether the prestige associated with reaching a sky high valuation fast drives companies to try to appear more valuable than they actually are."
That last sentence sounds a lot like Theranos.
[1] https://www.sec.gov/news/speech/chair-white-silicon-valley-i...
Re: Theranos Is Subject of Criminal Probe by U.S
#15The news release issued when the Walgreens deal was announced said consumers “will be able to access less invasive and more affordable clinician-directed lab testing, from a blood sample as small as a few drops, or 1/1,000 the size of a typical blood draw.”
As part of the deal, Walgreens has invested at least $50 million into Theranos, according to people familiar with the matter.
It really blows my mind that Theranos was able to get this far with what sounds like technology that simply didn't work. Did any investors simply try the test(s) before investing vast sums of money?
Re: Theranos Is Subject of Criminal Probe by U.S
#16Like I've mentioned before, Theranos needs to shut down. The technology doesn't work (and likely it never will since blood constituents are not evenly distributed at small volumes) and its investors and executives are complicit in fraud. While half-completed/non-working solutions are fine in software world and with consumer electronics, a misreading or missed reading of blood parts can easily cost the health or life…
healthcare is a very hard problem.
While we in the tech community may find it morbidly entertaining to watch Theranos burn to the ground. Someone out there needs to attack healthcare. The not dying motivation is fairly important.
Re: Theranos Is Subject of Criminal Probe by U.S
#17One thing I'd love to know, and that might come out in court eventually, is which early investors exited in the huge dumb-money round in 2014. What did they know and when did they know it, and all that.
Re: Theranos Is Subject of Criminal Probe by U.S
#18When 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.
Respectfully, that's a nonsense point of view. The investors want to get as much of their investment back as possible, or, if they've given up on that, they at least don't want to be seen as having invested in criminals.
Re: Theranos Is Subject of Criminal Probe by U.S
#19When 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 SEC is getting more aggressive about regulating large pseudo-public companies that haven't had a formal IPO, but which have many "qualified" investors.[1] Mutual funds now invest in these companies, which means ordinary investors are at risk. The SEC chair on "unicorns": "It is axiomatic that all private and public securities transactions, no matter the sophistication of the parties, must be free from fraud. Exch…
"tough on Unicorns" :) The plight of Theranos has just become much worse as they will probably be made an example of.
Re: Theranos Is Subject of Criminal Probe by U.S
#20non-paywall link: