As Elizabeth Holmes retreats further and further into the collar of her requisite black turtleneck, things continue to look worse for her besmirched blood-testing company, Theranos. After months of bad news — including lab closures, major staff layoffs, and a revaluation of her personal wealth at effectively nothing — today, The Wall Street Journal reported that Theranos, yet again, allegedly wasn’t entirely forthcoming regarding its technology. (Holmes & Co. were supposedly creating a blood-testing product that could scan for significant data using less blood than traditional methods. This technology has yet to fully materialize.) The company, WSJ says, “used a shell company to ‘secretly’ buy commercial-lab equipment, and improperly created rosy financial projections for investors.” Theranos used the commercial technology it purchased to stage demonstrations of how its blood tests worked, or theoretically worked.
The information comes from a recently unsealed court filing involving Theranos investors who are currently suing the company. Partner Fund Management L.P., one of the company’s largest backers, is suing Theranos for $100 million. (Theranos has, thus far, denied all of the fund’s allegations.) Perhaps Holmes should call up the folks over at Magic Leap, they know a thing or two about getting busted for fake demonstrations and overselling technology.
Select All reached out to Theranos and will update this post if we hear back.
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