Theranos Founder Forced to Settle After SEC Fraud Charge
Elizabeth Holmes has agreed to settle charges of fraud with the SEC.
According to US regulators, the CEO of Theranos will be stripped of her majority control over the blood-testing startup, among other penalties.
Holmes was charged by the Securities and Exchange Commission for committed an elaborate fraud over years, to raise more than $700 million from investors for the pharmaceutical startup.
But the company never delivered on their core technology, which promised to analyze a single drop of blood to identify health problems.
SEC’s complaint also alleged that Holmes, the company, and former president Ramesh Balwani engaged in a fallacious and misleading PR campaign about future products.