Saturday, June 25, 2022

Former Theranos CEO Holmes Convicted of Fraud and Conspiracy

The Surprise Verdict:

Former CEO of Theranos, Elizabeth Holmes (37), was convicted of duping investors into believing her startup company on Monday. Theranos earlier claimed that it had developed a device that could detect a multitude of diseases and conditions from a few drops of blood. 

Many experts watching Silicon Valley talked about its hype culture to boost businesses. The ups and downs of Theranos and its CEO, Holmes, is a classical example that the expert opinions are valid. 

A jury convicted Holmes of two counts of wire fraud and two counts of conspiracy to commit fraud. The Stanford dropout CEO’s conviction came after seven days of deliberation.

However, the case started earlier in 2015 when a group of people investigated the company. Two medical research professors, John Ioannidis and Eleftherios Diamandis, and an investigative journalist of The Wall Street Journal, John Carreyrou, questioned the reliability and validity of the company’s so-called breakthrough technology. 

Holmes stayed calm and composed in the court. Image source: BBC

Holmes has been the CEO of this company for 15 years. But now, she is facing charges that could serve her 20 years of jail time.

The verdict came as a shocker for many Silicon Valley companies. They often used to excite their company, technology, or product to gain more business. Many giants have successfully practiced that culture. Experts also anticipate that this verdict could halt them from branding their products by giving false information.

History of Theranos:

The company initially developed a technology called ‘Nanotainer’, and ‘Edison’ claimed it needed only a few drops of blood to diagnose many diseases. However, more often, its technology failed to give accurate results. Moreover, the company was allegedly using conventional machines for the work. As a result, it cheated many investors and patients who trusted the company.

The company also claimed that it had a collaboration with other medical companies like Pfizer and the U.S. military. The then-Vice President Joe Biden was invited to the company facility to boast its name. Nonetheless, later it was found out that she had set up a fake lab to show the Vice President. Now, some media blames President Joe Biden for helping the fraudster when he was the Vice President.

The jury that convicted Holmes was constituted of eight men and four women. Holmes reportedly stayed calm and composed and didn’t show any visible emotions during the delivery of the verdict. She often tried to convince the court that Theranos would correct the flaws it made in the past.

Though Holmes will face 20 years of jail time, legal experts opined that she is unlikely to get the maximum sentence. However, it has already become a high-profile case in the U.S. and worldwide.

Jinsh Rayaroth
I am a journalism student at Seneca College, Toronto. Also an ardent photographer and a news enthusiast. I am also working as a content creator for Woodland Canada.

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