SEVERE WX : Severe Thunderstorm Watch View Alerts
STREAMING NOW: Watch Now

The rise and fall of Elizabeth Holmes

Theranos went from one of the most lauded "unicorn" tech startups in Silicon Valley to a company crippled by scandal....

Posted: Jun 17, 2018 1:21 AM
Updated: Jun 17, 2018 1:21 AM

Theranos went from one of the most lauded "unicorn" tech startups in Silicon Valley to a company crippled by scandal.

Elizabeth Holmes, Theranos' founder and CEO, dropped out of Stanford University to launch the company in 2003 as a cheaper, more efficient alternative to traditional medical tests. It promised patients the ability to test for conditions like cancer and diabetes with just a few drops of blood.

But questions swirled over its testing and technology. Investigations ensued. And on Friday, Holmes was charged by the US government with wire fraud and conspiracy to commit wire fraud. She faces up to 20 years in prison if convicted.

Here's a look back at the rise and fall of Elizabeth Holmes and her blood testing startup.

2014

- September 29, 2014: Holmes is named one of the richest women in America by Forbes. The outlet reports she owns a 50% stake in the startup, which is valued at $9 billion.

- December 15, 2014: The New Yorker reports Theranos has raised more than $400 million and it counts Oracle's Larry Ellison among its investors.

2015

- October 12, 2015: The New York Times names Holmes one of its "Five Visionary Tech Entrepreneurs who are changing the world." But shortly after, headlines for Holmes and Theranos take on a different tone.

- October 16, 2015: The Wall Street Journal publishes a front-page story about the accuracy of Theranos' tests, claiming the company used traditional lab machines instead of its own.

- October 27, 2015: An FDA report cites numerous concerns with the company, calling its proprietary blood-collection vial an "uncleared medical device."

2016

- January 27, 2016: Centers for Medicare and Medicaid Services sends Theranos a letter saying it was not complying with federal blood-testing rules and that patients were in "immediate jeopardy." It gives the company 10 days to address the issues.

- July 7, 2016: Regulators ban Theranos from running a lab for two years and revoke its certification.

- October 5, 2016: Theranos closes clinical labs and wellness centers and lays off 340 employees. Holmes says the company will pivot and focus on making a small, automated testing machine.

- March 3, 2016: A federal agency releases a redacted 121-page report based on a previous inspection of the Theranos labs, citing serious issues with the company's equipment and quality control.

- May 2016: Theranos president and COO Ramesh "Sunny" Balwani steps down from the company.

- June 1, 2016: Forbes revises its estimate of Holmes' net worth from $4.5 billion to $0. It also lowered its valuation for the company from $9 billion to $800 million.

- June, 2016: Drug chain Walgreens, which had Theranos centers at 40 locations, pulls out of its three year partnership with the company.

- August 1, 2016: Holmes tries to revive the company by presenting the company's mini testing laboratory, called miniLab, at a conference for the American Association for Clinical Chemistry. Attendees were skeptical.

- October 10, 2016: Major Theranos investor Partner Fund Management sues the company, accusing it of securities fraud. The lawsuit was settled in May, 2017, for an undisclosed amount.

- November 8, 2016: Walgreens sues Theranos for $140 million, alleging breach of contract. The lawsuit was settled August, 2017, for an undisclosed amount.

2017

- January 6, 2017: Theranos lays off another 155 employees -- 41% of its staff.

- January 17, 2017: The Wall Street Journal reports that Theranos failed a second regulatory lab inspection in September, and that the company was closing its last blood testing location as a result.

- April 17, 2017: Theranos settles with the Centers for Medicare and Medicaid Services, paying the government agency $30,000, giving $4.65 million to Arizona customers, and vowing to stay out of blood testing for two years.

2018

- March 14, 2018: The SEC levies civil charges against Holmes and former Theranos president Ramesh Balwanifor an "elaborate, years-long fraud in which they exaggerated or made false statements about the company's technology, business, and financial performance." Holmes agrees to a settlement that requires her to pay a $500,000 penalty, sidelines her from decision making at Theranos and bans her from top leadership positions at publicly traded companies for a decade.

- June 15, 2018: Holmes and Balwani are charged with two counts of conspiracy to commit wire fraud and nine counts of wire fraud. They are accused of carrying out a multi-million dollar a scheme to defraud investors, doctors and patients.

If convicted, they each face a maximum sentence of 20 years in prison and a fine of $250,000, plus restitution for each count of wire fraud and each conspiracy count, according to the US Attorney's office.

--This is an updated version of an article that was published on March 14, 2018.

Minnesota Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 25208

Reported Deaths: 1060
CountyConfirmedDeaths
Hennepin8514616
Ramsey3075128
Stearns203013
Nobles15445
Anoka142970
Dakota134957
Washington64532
Olmsted63410
Kandiyohi4971
Rice4622
Scott4362
Clay42728
Mower3452
Wright3202
Todd3190
Sherburne2462
Carver2182
Benton1783
Steele1600
Blue Earth1420
Martin1325
Freeborn1250
St. Louis11814
Pine890
Unassigned8810
Nicollet8810
Winona8015
Cottonwood760
Watonwan750
Carlton750
Crow Wing712
Otter Tail700
Goodhue683
Chisago621
Polk612
Lyon570
Itasca5510
Dodge530
Chippewa511
Morrison470
Meeker450
Douglas440
Le Sueur441
Becker400
Murray390
Jackson390
McLeod370
Isanti350
Waseca260
Rock220
Swift190
Mille Lacs191
Pennington190
Faribault190
Wabasha180
Fillmore171
Sibley160
Brown162
Beltrami150
Cass142
Norman130
Marshall120
Pipestone120
Kanabec111
Wilkin113
Wadena100
Koochiching90
Pope90
Aitkin80
Mahnomen61
Yellow Medicine60
Big Stone60
Lincoln50
Redwood50
Renville50
Red Lake40
Grant40
Lac qui Parle30
Clearwater30
Traverse30
Houston20
Hubbard20
Roseau20
Lake10
Kittson10
Stevens10

Iowa Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 19669

Reported Deaths: 555
CountyConfirmedDeaths
Polk4236133
Woodbury276136
Black Hawk174745
Linn95379
Dallas91623
Marshall89616
Buena Vista8100
Johnson6149
Wapello59712
Muscatine55741
Crawford5282
Tama40327
Scott36110
Dubuque34619
Louisa34511
Sioux2830
Pottawattamie2698
Jasper26017
Washington1898
Wright1780
Warren1350
Plymouth1332
Allamakee1204
Story1161
Mahaska9510
Poweshiek908
Henry711
Bremer696
Des Moines651
Boone650
Clinton641
Taylor560
Clarke560
Guthrie513
Cedar481
Benton431
Hamilton430
Webster421
Monroe385
Shelby370
Jones360
Clayton343
Osceola340
Buchanan330
Iowa330
Marion320
Cherokee310
Jefferson300
Cerro Gordo291
Madison292
Lee270
Fayette270
Monona250
Winneshiek240
Lyon240
Davis230
Harrison230
Dickinson210
Sac200
Grundy200
Mills190
Floyd191
Humboldt181
Clay170
Delaware171
Hardin170
Butler171
Lucas170
Emmet160
Hancock160
Appanoose143
Ida140
Page140
Franklin140
Keokuk140
Pocahontas130
Greene130
Howard120
Cass120
Audubon121
Jackson120
Carroll110
Winnebago110
Chickasaw100
Kossuth100
Adair90
Van Buren90
Union90
Montgomery80
Adams70
Palo Alto70
Fremont40
Ringgold40
Mitchell40
Worth30
Calhoun20
Wayne10
Decatur10
Unassigned10
Rochester
Scattered Clouds
92° wxIcon
Hi: 92° Lo: 62°
Feels Like: 95°
Mason City
Clear
96° wxIcon
Hi: 94° Lo: 64°
Feels Like: 96°
Albert Lea
Clear
95° wxIcon
Hi: 92° Lo: 63°
Feels Like: 95°
Austin
Scattered Clouds
97° wxIcon
Hi: 93° Lo: 64°
Feels Like: 103°
Charles City
Clear
91° wxIcon
Hi: 92° Lo: 65°
Feels Like: 92°
Powerful storms and summer-like conditions are coming our way
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

Minne "Sno" Da Opens Up

Image

VFW Waits To Reopen Inside

Image

Blackout Tuesday

Image

Sara's Midday Forecast - Tuesday

Image

Pool sales on the rise while pools remain closed

Image

Sara's Daybreak Forecast - Tuesday

Image

Rochester man bringing donations to the Twin Cities.

${item.thumbnail.title}

StormTeam 3: Today's Severe Weather Update

Image

Yoga studio closes space, tries new idea

Image

Forager Brewery welcomes new business

Community Events