Theranos
 | |
| Theranos sign outside the company's offices | |
| Type | Private health technology company |
|---|---|
| Founded | 2003 (as Real-Time Cures) |
| Dissolved | 2018 |
| Founder | Elizabeth Holmes |
| Headquarters | Palo Alto, California, U.S. |
| Key people | Elizabeth Holmes (CEO); Ramesh "Sunny" Balwani (president) |
| Industry | Health technology |
Theranos was an American health technology company that claimed to have developed devices able to run a wide range of blood tests from a few drops of blood. Founded in 2003 by Elizabeth Holmes, it raised more than $600 million from investors and was valued at about $9 billion in 2014.[1] After reporting in 2015 showed that its technology did not work as claimed, the company faced regulatory sanctions and federal fraud charges, and it dissolved in 2018. Holmes and former president Ramesh "Sunny" Balwani were later convicted of fraud.[2]
History
Founding and growth
Holmes founded the company in 2003 as Real-Time Cures after leaving Stanford University at 19, and later renamed it Theranos, a blend of "therapy" and "diagnosis".[3] The company promoted a portable testing device called the Edison, for which Holmes recruited designers from Apple.[1]
Theranos attracted a high-profile board of directors that included George Shultz, Henry Kissinger, and Jim Mattis, and investors including Rupert Murdoch, the DeVos family, and heirs of Sam Walton.[1] In September 2013, it signed an agreement with Walgreens to place its testing services in Walgreens stores, and it opened testing sites in nearly 50 locations.[1][3]
Investigation and collapse
In October 2015, The Wall Street Journal published reporting by John Carreyrou showing that Theranos ran most of its tests on conventional laboratory machines rather than the Edison, and that patients had received inaccurate results. Tyler Shultz, a former employee and grandson of board member George Shultz, was among the first employees to raise concerns.[1][4]
In January 2016, federal regulators shut down the company's laboratory in Newark, California. In April 2017, Theranos settled with the Centers for Medicare & Medicaid Services, paying a $30,000 fine and accepting a two-year ban from operating in the blood-testing industry.[3] Walgreens sued Theranos in November 2016 over its $140 million investment, and the two settled in 2017 for less than $30 million.[1]
On March 14, 2018, the Securities and Exchange Commission charged Theranos, Holmes, and Balwani with raising more than $700 million through fraud.[5] Holmes and Balwani were indicted on federal wire fraud and conspiracy charges in June 2018. In September 2018, Theranos announced that it would dissolve after paying creditors with its remaining cash.[1][6]
Criminal convictions
In January 2022, a jury convicted Holmes of three counts of wire fraud and one count of conspiracy to commit wire fraud against investors; she was sentenced to 135 months in prison.[2][4] Balwani, tried separately, was convicted on all 12 counts against him in July 2022 and sentenced to nearly 13 years.[7]
Legacy
Theranos became a widely cited example of the gap between a technology startup's public promises and its actual capabilities. Its story was told in Carreyrou's 2018 book Bad Blood, the 2019 HBO documentary The Inventor, and the 2022 Hulu series The Dropout.[3] Holmes's persona later inspired Liz777, a Milady account.
See also
References
- ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 Eloise Barry (August 25, 2021). "Elizabeth Holmes Trial: What to Expect in the Theranos Case". Time. Retrieved October 16, 2026.
- ↑ 2.0 2.1 "U.S. v. Elizabeth Holmes, et al.". U.S. Attorney's Office, Northern District of California. Retrieved October 13, 2026.
- ↑ 3.0 3.1 3.2 3.3 "Elizabeth Holmes". Biography.com. Retrieved October 16, 2026.
- ↑ 4.0 4.1 January 3, 2022. "Elizabeth Holmes verdict: Former Theranos CEO is found guilty on 4 counts". NPR. Retrieved October 16, 2026.
- ↑ March 15, 2018. "SEC Charges Theranos Founder Elizabeth Holmes With 'Elaborate, Years-Long Fraud'". NPR. Retrieved October 16, 2026.
- ↑ September 5, 2018. "Theranos, Blood-Testing Company Plagued By Scandal, Says It Will Dissolve". NPR. Retrieved October 15, 2026.
- ↑ December 7, 2022. "Ramesh 'Sunny' Balwani is sentenced to nearly 13 years for his role in Theranos fraud". NPR. Retrieved October 16, 2026.