In October we noted that the death of Theranos has been long coming – ever since the WSJ’ John Carreyrou did a phenomenal job, starting about one year ago, of exposing the fraud that is Clinton Global Initiative-darling Elizabeth Holmes – but now following the second round of massive job cuts, it appears the final nail in the coffin of this ‘fake news’ unicorn is being struck. As Bloomberg reports, the startup will eliminate 155 more positions, leaving 220 employees (down over 70% from highs).
As Bloomberg details, Theranos Inc., the embattled blood-testing company, will fire about 41 percent of its employees after months of regulatory setbacks,lawsuits, and scrutiny.
2016 has not been too kind to Elizabeth Holmes, the Steve-Jobs wannabe in charge of fraudulent Theranos. She has thus far been banned for 2 years from operating labs, removed from hosting fundraisers for Hillary and lost her entire net worth.
It was just a matter of time: shortly after none other than “youngest ever billionaire” Elizabeth Holmes herself admitted that the technology of her “innovative” company Theranos had been effectively a fraud, when several weeks ago the company voided and restated years of test results, the valuation of the company has finally been adjusted to reflect the underlying value of the company. And Holmes’ own net worth. As Forbes reports today, after Elizabeth Holmes topped the Forbes list of America’s Richest Self-Made Women with a net worth of $4.5 billion, today, the magazine lowered its estimate of her net worth to nothing.
Theranos, Forbes notes, had no comment.
This is what Forbes said:
If you take a look at the board of directors (below) you’ll find that none other than Henry Kissinger is a board member.
It seems billion dollar baby of Silcon Valley, Elizabeth Holmes, is facing yet another unicorn-slaying moment as the fairy-take ending for Stanford drop-out looks increasingly distant after a WSJ report that U.S. health inspectors have found serious deficiencies at Theranos Inc.’s laboratory in Northern California, according to people familiar with the matter. With a board full of big swinging dicks about to be exposed for the greater fools they truly are, failing to fix the problems could put the Theranos lab at risk of suspension from the Medicare program.
We reported on the beginning of the end of the multi-billion dollar dream here, when its core “new technology” – known as a Capillary Tube Nanocontainer (CTN) – was exposed as essentially unacceptable for use.
And now, as The Wall Street Journal reports, U.S. health inspectors have found serious deficiencies at Theranos Inc.’s laboratory in Northern California, according to people familiar with the matter.
The problems were found during an inspection by the Centers for Medicare and Medicaid Services, the chief federal regulator of clinical labs, at the blood-testing company’s facility in Newark, Calif. Failing to fix the problems could put the Theranos lab at risk of suspension from the Medicare program.