Theranos- medical lab testing

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esseff44
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Theranos- medical lab testing

#1

Post by esseff44 » Mon Oct 06, 2014 6:49 pm

Last week, I was browsing the Forbes list of US billionaires and was intrigued by one of the new ones on the list. She's a Stanford drop-out and already a billionaire at 30. She discovered and patented a method of testing blood using drops instead of tubes that were required normally. She started a company called Theranos. My guess is we will be hearing a lot more about this young billionaire and her company.



http://en.wikipedia.org/wiki/Elizabeth_ ... sperson%29



http://en.wikipedia.org/wiki/Theranos



http://www.theranos.com/

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Theranos- medical lab testing

#2

Post by Foggy » Tue Oct 07, 2014 5:42 am

I like to have a face to go with the story. She's beautiful.




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Re: Theranos- medical lab testing

#3

Post by mmmirele » Wed Mar 14, 2018 12:34 pm

Well, we have a topic already, but it may need to be moved somewhere more appropriate because of the following:



Apparently the actual SEC action is forthcoming...

For the record, I really wanted this to work because I hate blood draws. When it first came out that this was probably not all it was cracked up to be, I was really disappointed.

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Re: Theranos- medical lab testing

#4

Post by much ado » Wed Mar 14, 2018 12:42 pm

Foggy wrote:
Tue Oct 07, 2014 5:42 am
I like to have a face to go with the story. She's beautiful.
She often shows scary eyes, though, in my opinion.

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Re: Theranos- medical lab testing

#5

Post by Tiredretiredlawyer » Wed Mar 14, 2018 12:59 pm

https://www.sec.gov/news/press-release/2018-41
The Securities and Exchange Commission today charged Silicon Valley-based private company Theranos Inc., its founder and CEO Elizabeth Holmes, and its former President Ramesh “Sunny” Balwani with raising more than $700 million from investors through an elaborate, years-long fraud in which they exaggerated or made false statements about the company’s technology, business, and financial performance. Theranos and Holmes have agreed to resolve the charges against them. Importantly, in addition to a penalty, Holmes has agreed to give up majority voting control over the company, as well as to a reduction of her equity which, combined with shares she previously returned, materially reduces her equity stake.

The complaints allege [in addition to other things] that Theranos, Holmes, and Balwani made numerous false and misleading statements in investor presentations, product demonstrations, and media articles by which they deceived investors into believing that its key product – a portable blood analyzer – could conduct comprehensive blood tests from finger drops of blood, revolutionizing the blood testing industry. In truth, according to the SEC’s complaint, Theranos’ proprietary analyzer could complete only a small number of tests, and the company conducted the vast majority of patient tests on modified and industry-standard commercial analyzers manufactured by others.

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. Due to the company’s liquidation preference, if Theranos is acquired or is otherwise liquidated, Holmes would not profit from her ownership until – assuming redemption of certain warrants – over $750 million is returned to defrauded investors and other preferred shareholders. The settlements with Theranos and Holmes are subject to court approval. Theranos and Holmes neither admitted nor denied the allegations in the SEC’s complaint. The SEC will litigate its claims against Balwani in federal district court in the Northern District of California.
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Re: Theranos- medical lab testing

#6

Post by JohnPCapitalist » Wed Mar 14, 2018 1:14 pm

mmmirele wrote:
Wed Mar 14, 2018 12:34 pm
For the record, I really wanted this to work because I hate blood draws. When it first came out that this was probably not all it was cracked up to be, I was really disappointed.
Anyone would prefer their method to blood draws. I talked to several friends who are hotshot medical researchers, including one who spoke at length with the company. Nobody I know who has expertise in this stuff ever thought this even had a remote chance of working. While they didn't go out and call it a fraud, they were pretty clear that nobody in the clinical side believed in it.

The fact that they had all these big board members with political connections like Henry Kissinger, George Shultz, and other hitters who had no knowledge of medicine (Former senator Bill Frist was on the board but he hadn't practiced as a surgeon for decades, and surgeons are not reknowned for lab skills) was also a massive red flag.

She may have believed her own bullshit, but all the signs were there that Theranos was a fraud ab initio. I'm surprised that she got away with a small civil penalty, relinquishing her shares and voting control and no jail time. She certainly would have been an excellent test case for fraud in Silicon Valley startups. Next up: Uber, whose economic model sure looks to me to be inherently not viable.

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Re: Theranos- medical lab testing

#7

Post by much ado » Wed Mar 14, 2018 2:22 pm

much ado wrote:
Wed Mar 14, 2018 12:42 pm
Foggy wrote:
Tue Oct 07, 2014 5:42 am
I like to have a face to go with the story. She's beautiful.
She often shows scary eyes, though, in my opinion.
Sorta like this...

Image

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Re: Theranos- medical lab testing

#8

Post by Sterngard Friegen » Wed Mar 14, 2018 3:03 pm

Sanpaku.

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Re: Theranos- medical lab testing

#9

Post by much ado » Wed Mar 14, 2018 3:22 pm

Sterngard Friegen wrote:
Wed Mar 14, 2018 3:03 pm
Sanpaku.
True, that. But it's possible to have sanpaku eyes without looking "bat-shit crazy", as one poster put it. I give you Audrey Hepburn...

Image

From the page https://tokyogirlsupdate.com/sanpakugan ... 61207.html

where they say
I am guessing the most familiar person that has Sanpaku eyes would be Audrey Hepburn.

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Re: Theranos- medical lab testing

#10

Post by Foggy » Wed Mar 14, 2018 6:06 pm

Wow, she has to give up a ton of shares in the company. Of course, if the company is built on a fraud, the shares may be worthless. Imagine the pain. :roll:
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Re: Theranos- medical lab testing

#11

Post by TollandRCR » Wed Mar 14, 2018 6:47 pm

In the past two months I have become rather expert in the methods of drawing blood from the viewpoint of the stickee. I have seen “butterfly” equipment for the first time, which I can vouch is less painful than the familiar needle in the elbow. I also saw at YNHH an instrument that permits the IV specialist to see (by infrared light) not only blood in the veins but also valves and scar tissue. It is not the “drops” solution, but today a blood draw can be done in that are much less likely to require you to lie down for a while.
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Re: Theranos- medical lab testing

#12

Post by much ado » Wed Mar 14, 2018 7:03 pm

Here is a link to the SEC filing, which is actually a bit interesting. Makes it look like she is lucky to get away with no jail time...

https://www.sec.gov/litigation/complain ... holmes.pdf

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Re: Theranos- medical lab testing

#13

Post by Northland10 » Wed Mar 14, 2018 8:29 pm

I pray there is a special place in hell for those in the healthcare industry who commit fraud. I despise all those who make it their mission to increase their company/stock value at the expense of caring for the sick.
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Re: Theranos- medical lab testing

#14

Post by Somerset » Sat Jun 16, 2018 1:56 pm

Theranos founder Holmes, President Balwani indicted on wire fraud charges

Theranos Inc founder Elizabeth Holmes and the blood testing company’s former president, Ramesh “Sunny” Balwani, have been indicted by a federal grand jury in California on charges of wire fraud, the U.S. Justice Department said on Friday.

According to the indictment, Holmes and Balwani encouraged doctors and patients to use the company’s blood testing services even though the defendants knew Theranos was not capable of consistently producing accurate and reliable results for certain blood tests, the department said in a statement.
https://www.reuters.com/article/us-ther ... SKBN1JB2Y5

I read Bad Blood by John Carreyrou last week. Highly recommended. As JPC mentioned upthread, if the board of a medical company is populated by the likes of Henry Kissinger and George Shultz, you might want to think twice about investing in it. She and her asshole boyfriend are facing 20 years.

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Re: Theranos- medical lab testing

#15

Post by Grumpy Old Guy » Sat Jun 16, 2018 2:11 pm

I would steer clear of any company with old politicians on the board. They are so flattered to be asked they don’t ask the hard questions, assuming they could think of any.

Conrad Black’s Chicago trial showed just how out of it the board-members were, including Kissinger.

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Re: Theranos- medical lab testing

#16

Post by much ado » Sat Jun 16, 2018 2:13 pm

Somerset wrote:
Sat Jun 16, 2018 1:56 pm
:snippity:
I read Bad Blood by John Carreyrou last week. Highly recommended. As JPC mentioned upthread, if the board of a medical company is populated by the likes of Henry Kissinger and George Shultz, you might want to think twice about investing in it. She and her asshole boyfriend are facing 20 years.
The book is being made into a movie with Jennifer Lawrence starring in the role of CEO Elizabeth Holmes.

Image

Pretty good, huh? But I think Jennifer will have to practice to get that odd gaze just right.

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Re: Theranos- medical lab testing

#17

Post by derevan » Sat Jun 16, 2018 3:03 pm

Somerset wrote:
Sat Jun 16, 2018 1:56 pm
Theranos founder Holmes, President Balwani indicted on wire fraud charges

I read Bad Blood by John Carreyrou last week. Highly recommended. As JPC mentioned upthread, if the board of a medical company is populated by the likes of Henry Kissinger and George Shultz, you might want to think twice about investing in it. She and her asshole boyfriend are facing 20 years.
I believe they're facing 20 years each per count in the indictment. There are 11 counts.

http://www.latimes.com/business/technol ... story.html

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Re: Theranos- medical lab testing

#18

Post by Sterngard Friegen » Sat Jun 16, 2018 3:13 pm

The early posts are interesting.

No one thought it might be too good to be true?

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Re: Theranos- medical lab testing

#19

Post by Hercule Parrot » Sat Jun 16, 2018 3:56 pm

Somerset wrote:
Sat Jun 16, 2018 1:56 pm
I read Bad Blood by John Carreyrou last week. Highly recommended....
Me too, great book. Seems clear that Holmes isn't a brave visionary who overeached, but an egotistical liar and bully. Fraud was piled on top of fraud, staff were victimised, patients were endangered. And her Board of creepy dotard admirers did nothing, despite having the evidence put under their noses.

On the bright side, her greedy and stupid stockholders have lost every cent of their investment. Hopefully this will remind people to carry out due diligence before screaming "Please, take my money!"

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Re: Theranos- medical lab testing

#20

Post by Hercule Parrot » Sat Jun 16, 2018 4:27 pm

Sterngard Friegen wrote:
Sat Jun 16, 2018 3:13 pm
The early posts are interesting.

No one thought it might be too good to be true?
Yes, there was some gullibility. But nowadays we're living with Clarke's third law ("Any sufficiently advanced technology is indistinguishable from magic") as a daily reality. So much amazing science and technology around, it starts to feel as if anything is possible.

By the way, can I interest you in an advantageous early investment in my start-up? I've designed a revolutionary new nanobot which can synthesis their fuel from one drop of organic, fair trade snake oil. We're engineering nano-scale replicas of the Brooklyn Bridge, for use in an advanced surgical procedure which I can't disclose. But trust me, some really big people are backing this. We're using a secret carbon-fibre ceramic matrix of quantum Buckyballs, and you know how cool that is, right?

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Re: Theranos- medical lab testing

#21

Post by Sterngard Friegen » Sat Jun 16, 2018 4:37 pm

Thanks, Herc. I'm very interested in your proposed investment. I should be getting a lot of money soon from the estate of a Nigerian Prince who died and who miraculously has my last name! I've just sent the costs for the ATM-card-of-riches. In a couple of days I'll be begging to send you tens of thousands. At least.

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Re: Theranos- medical lab testing

#22

Post by kate520 » Sat Jun 16, 2018 4:39 pm

Pretty good, huh? But I think Jennifer will have to practice to get that odd gaze just right.
Pshaw, that’s easy...contacts make you look like that. I’ve often wondered if people who wear contacts realize they look like they’re on the verge of going postal. Its one of the reasons I’ve never considered them.
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Re: Theranos- medical lab testing

#23

Post by Mikedunford » Sat Jun 16, 2018 4:42 pm

derevan wrote:
Sat Jun 16, 2018 3:03 pm
Somerset wrote:
Sat Jun 16, 2018 1:56 pm
I read Bad Blood by John Carreyrou last week. Highly recommended. As JPC mentioned upthread, if the board of a medical company is populated by the likes of Henry Kissinger and George Shultz, you might want to think twice about investing in it. She and her asshole boyfriend are facing 20 years.
I believe they're facing 20 years each per count in the indictment. There are 11 counts.

http://www.latimes.com/business/technol ... story.html
The press loves to dramatize things by adding up the statutory maximum for each count and declare that defendants are facing up to [insert ludicrous number of years] if convicted on all counts. In reality, the way the federal sentencing guidelines work makes it likely that they will receive a substantially lower sentence - in a case like this, probably less than 20 years - even if convicted on all counts.
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Re: Theranos- medical lab testing

#24

Post by RoadScholar » Sat Jun 16, 2018 5:49 pm

kate520 wrote:
Sat Jun 16, 2018 4:39 pm
Pretty good, huh? But I think Jennifer will have to practice to get that odd gaze just right.
Pshaw, that’s easy...contacts make you look like that. I’ve often wondered if people who wear contacts realize they look like they’re on the verge of going postal. Its one of the reasons I’ve never considered them.
I’m not sure it’s all physical... my flash, pre-cognitive impression of her subtext was that her face is saying “I really hope they can’t tell what I’m thinking.” The sort of face you wouldn’t believe if it told you it was raining out and she was plainly wet.
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Re: Theranos- medical lab testing

#25

Post by Skip Intro » Sat Jun 16, 2018 7:12 pm

There are always new suckers out there just waiting to get fleeced.
Meanwhile, WSJ reporter John Carreyrou recently revealed that Holmes was seeking Silicon Valley investors for a new start-up. She very well may have good luck, given that some of her previous investors still support her work.
https://arstechnica.com/tech-policy/201 ... l-charges/
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