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

Post by i_am_nomad » Wed, Mar 14, 2018, 7:25 PM UTC

ithinkinstereo wrote: post #84

hkmurakami wrote: post #4

>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. D…

Pretty good outcome, especially if she avoids criminal charges. Presumably she's still pretty wealthy, enough not to have to work again or to lie-low for the next decade before staging a comeback.

Post by draw_down » Wed, Mar 14, 2018, 7:30 PM UTC

i_am_nomad wrote: post #261

ithinkinstereo wrote: post #84

Earlier quoted context omitted.

Pretty good outcome, especially if she avoids criminal charges. Presumably she's still pretty wealthy, enough not to have to work again or to lie-low for the next decade before staging a comeback.

If I recall, she hasn’t gained any liquid wealth from Theranos - her net worth was recently reported to be zero. https://www.forbes.com/sites/matthewherper/2016/06/01/from-4...

Post by i_am_nomad » Wed, Mar 14, 2018, 7:31 PM UTC

ilamont wrote: post #245

cat199 wrote: post #108

call me back when the ex board members get hit for this.. IMHO the fraud wasn't the investors getting fleeced, it was the US public through obamacare payments made for pharmacy blood screening.. and given the players this will never, ever, ever see the light of day.. for now, it sounds like they are taking the fall to cover the higher ups to me.. https://en.wikipedia.org/wiki/Theranos Since its incorporation in 2003,…

Board members may have been incompetent, guilty of a dereliction of duty, or were tricked themselves. Meeting minutes would shed light on this.

Post by biot » Wed, Mar 14, 2018, 7:32 PM UTC

lxm wrote: post #74

ChuckMcM wrote: post #23

Ok, this is the money line in that press release for me: “The charges against Theranos, Holmes, and Balwani make clear that there is no exemption from the anti-fraud provisions of the federal securities laws simply because a company is non-public, development-stage, or the subject of exuberant media attention.” For all those entrepreneurs are trying to "fake it until you make it" be aware that the SEC considers your…

I interpreted it somewhat differently. The money paragraph seems to be > claimed that Theranos’ products were deployed by the U.S. Department of Defense on the battlefield in Afghanistan and on medevac helicopters and that the company would generate more than $100 million in revenue in 2014. In truth, Theranos’ technology was never deployed by the U.S. Department of Defense and generated a little more than $100,000 i…

Post by danso » Wed, Mar 14, 2018, 7:35 PM UTC

nodesocket wrote: post #243

williamscales wrote: post #237

Earlier quoted context omitted.

I don't think he was a scapegoat per se, he did actually do illegal things. But I imagine that things would have gone a lot better for him if he had not jacked up the price of Daraprim to the extent he did. It seems that drew attention to his previous activities.

> jacked up the price of Daraprim Which by the way is completely legal and common in the pharmaceutical market, but the media outrage and SJW backlash made it seem illegal.