<< >> Anyone who engages in deceptive practices should know they will not go undetected and will be held accountable. << >> endobj 23 [83 0 R 84 0 R 85 0 R 86 0 R 87 0 R 88 0 R 89 0 R 90 0 R 91 0 R 92 0 R endobj /Pg 239 0 R /Lang (EN-US) /P 51 0 R << /K 0 /K [28 391 0 R] /Parent 13 0 R There were . /P 50 0 R /S /L Assistant U.S. Special conditions for use statement(s): The Theranos HSV-1 IgG Assay is for prescription use only in accordance with 21 CFR 801.109 4. Government inspectors who arrived at Theranos in response to Cheungs letter found conditions similar to those in the complaint. /P 307 0 R endobj /Pg 240 0 R /Lang (EN-US) /StructParents 11 67 0 obj /Lang (EN-US) /Resources 436 0 R /P 8 0 R /Lang (EN-US) 268 0 obj endobj Attorneys Jeff Schenk, Robert S. Leach, and John C. Bostic are prosecuting the case with the assistance of Laurie Worthen and Bridget Kilkenny. /P 8 0 R 386 0 obj << 188 0 R null null null 189 0 R null null null 190 0 R null Elizabeth Holmes (Reuters); Ramesh "Sunny" Balwani (Getty Images). Theranos's mission statement is "To facilitate the early detection and prevention of disease and empower people everywhere to live their best possible lives.". /Lang (EN-US) endobj /MCID 2 >> /S /P /Lang (EN-US) /Rotate 0 276 0 obj /P 8 0 R endobj The defendants also represented to investors that Theranos would generate over $100 million in revenues and break even in 2014 and that Theranos expected to generate approximately $1 billion in revenues in 2015 when, in truth, the defendants knew Theranos would generate only negligible or modest revenues in 2014 and 2015. /Rotate 0 /S /LBody endobj /Parent 14 0 R << << 244 0 obj 22 [70 0 R 71 0 R 72 0 R 73 0 R 74 0 R 75 0 R 76 0 R 77 0 R 78 0 R 79 0 R >> Palo Alto, United States August 18, 2016: Elizabeth Holmes accepts The Entrepreneur award at, the 25th Annual Glamour Women of the Year Awards on Nov. 9, 2015, in New York. The Securities and Exchange Commission also brought civil fraud charges against Holmes and Balwani. /P 40 0 R /StructTreeRoot 3 0 R >> /Pg 255 0 R 313 0 obj endobj endobj << >> Theranos' mission is to make actionable health information accessible to people everywhere in the world at the time it matters, enabling early detection and intervention of disease. According to the indictment returned yesterday and unsealed today, the charges stem from allegations Holmes and Balwani engaged in a multi-million dollar scheme to defraud investors, and a separate scheme to defraud doctors and patients. /Underline /Span << endobj /Metadata 4 0 R 258 0 obj /S /LI /Resources 464 0 R /P 274 0 R /P 380 0 R /Type /Page /K 193 0 R 86 0 obj << << << 16 0 obj << /K 8 And although entrepreneurship is very much about turning an imagined future state into reality, the vast and unchecked gap between Theranos vision and the technological incompetence of its operations was breathtaking. Mission Statement. 364 0 obj Similarly, defendants purchased and used commercially-available analyzers to test patient blood, while representing to investors that Theranos conducted its patients tests using Theranos-manufactured analyzers. /S /LBody /Pg 239 0 R endobj 89 0 obj 155 0 obj /K 190 0 R /S /LBody endobj endobj Elizabeth Holmes is the founder and former CEO of Theranos (2003-2018), a company that created and distributed blood testing devices. /K 195 0 R /Tabs /S /S /LI /ModDate (D:20180314090210-07'00') /Pg 258 0 R /Pg 250 0 R /Annots [] /Tabs /S 126 0 obj /P 8 0 R In November 2022, Holmes was sentenced to 135 months in prison for defrauding investors in the failed Silicon . /Pg 255 0 R endobj But Theranos shared very little about its blood-testing machine with the public or medical community. Mission statements, where crafted and utilized effectively, have been proven to drive billions of dollars in corporate value. 237 0 obj Theranos was a privately held healthcare technology company founded by then 19-year-old Elizabeth Holmes in 2003. endobj 158 0 obj /K 159 0 R /K 226 0 R /Lang (EN-US) /K [14 389 0 R] $12,600 to the Democratic Party. /K 22 /S /LBody /S /LBody >> << There are at least four biases that can let a belief about a desired future state shape reality despite its disconnectedness from reality. 44 0 obj >> /S /LI >> 128 0 obj /Resources 472 0 R << /P 55 0 R /Lang (EN-US) Elizabeth Holmes speaks on stage at the Glamour Women of the Year Awards where she receives an award, in New York, NY on Nov. 9, 2015. << 356 0 obj The parable of Elizabeth Holmes and her company, Theranos, is not an unfamiliar one. /K 22 185 0 R null null] /K 134 0 R endobj Bundled together, these biases not only warped Holmes sense of truth, but they likely slanted the perspective of key stakeholders who were attracted to the many promises made by Theranos. /Resources 416 0 R /Annots [] << Theranos is a private health care and life sciences company with the stated mission to revolutionize medical laboratory testing through allegedly innovative methods for drawing blood, testing blood, and interpreting the resulting patient data. The company claimed that it had devised . /Lang (EN-US) /P 340 0 R /Lang (EN-US) >> /S /P << >> 257 0 obj 335 0 obj /Lang (EN-US) << endobj >> /S /LI << Around the time that Theranos was losing nearly $2 million per week, investors in the blood-testing startup were being told that the company would soon be bringing in almost $1 billion per year. /K [273 0 R 274 0 R] When Yam was working with an analytics firm to price stock options, she asked Holmes for some key financial forecasts, including projected revenue, because the CEO had the best information. During that process, Yam had emailed Holmes asking her how much revenue she was anticipating. 13 [null null 178 0 R null null null 179 0 R null null null endobj >> /S /L Claim This Company. /S /LBody /P 313 0 R << The matter was assigned to the Honorable Lucy H. Koh, U.S. District Judge, for further proceedings. << Many of those statements were outright falsehoods or, more charitably, danced around the truth. /Type /MCR /P 50 0 R /S /LI << << /S /L /StructParents 13 76 0 obj /S /LBody /Lang (EN-US) 3553. /K 6 >> << << Just 12 tests were performed on Edison devices, and the Edison analyzer could only run one type of test for one patient at a given time, she said. Learn about working at Theranos from employee reviews and detailed data on culture, salaries, demographics, management, financial, and more. /P 40 0 R endobj /Pg 249 0 R /P 380 0 R << >> I write about culture, leadership and ethics in business and work. /Pg 240 0 R >> >> >> >> 312 0 obj /S /LBody /S /LI /Pg 251 0 R << uuid:08e7f9c5-06b3-4447-b9e6-d8f448ec8b85 endobj << /P 376 0 R Theranos is ranked #71 on the Best Start-up Companies to Work For in America list. /Lang (EN-US) 199 0 R null null] << /P 389 0 R /P 329 0 R /Count 5 >> /Lang (EN-US) /Lang (EN-US) endobj << << << /CropBox [0 0 612 792] >> /K 14 /P 262 0 R /Annots [] /Pg 256 0 R /Pg 257 0 R /Lang (EN-US) Elizabeth Holmes, the infamous biotech chief executive who promised to revolutionize blood testing, has been found guilty of fraud. 299 0 obj << /S /P /K 16 endobj /S /LI /P 366 0 R /S /P /BBox [79.9440002441 274.9559936523 453.9599914551 398.8439941406] Best Companies to Work for in Palo Alto, CA, Best Start-up Companies to Work For in America, Best Health Care Companies to Work For in California, Best Start-up Companies to Work For in California, Best Companies to Work For in Palo Alto, CA, Best Health Care Companies to Work For in Palo Alto, CA, Best Start-up Companies to Work For in Palo Alto, CA. /P 303 0 R >> << Elizabeth Holmes dropped out of Stanford in 2003 as a 19-year-old to start Theranos. << /StructParents 0 endobj << >> 168 0 obj /S /LI << << CNN . /S /P /K 162 0 R /P 349 0 R /P 312 0 R /S /LI >> endobj /K 133 0 R /S /P 154 0 R null null null 155 0 R null null null 156 0 R null 17 [null null 204 0 R null null null 205 0 R null null null Elizabeth Holmes donated /S /P << 23 0 obj /Pg 237 0 R /P 369 0 R /S /LBody /P 290 0 R /S /LBody /Lang (EN-US) /S /P /MCID 2 6 0 obj << /S /LBody << /MediaBox [0 0 612 792] 247 0 obj << >> /K 6 /P 302 0 R The indictment describes a number of schemes that defendants allegedly employed to mislead investors, doctors, and patients. 10 0 obj /MCID 2 << flagrantly vague and often outright untruthful statements. << >> /P 8 0 R /S /LI << endobj << /Pg 251 0 R Holmes was found guilty on four felony fraud counts associated with a loss to victims of at least $120 million. endobj /Pg 254 0 R /S /LI /S /LBody endobj >> /P 8 0 R << If convicted, the defendants face a maximum sentence of twenty (20) years in prison, and a fine of $250,000, plus restitution, for each count of wire fraud and for each conspiracy count. 368 0 obj /Type /MCR /K 14 endobj /P 55 0 R /P 323 0 R These detailed accounts show a pattern of behaviors consistent with a distorted motivational and cognitive state. /Parent 14 0 R /Pg 238 0 R /K 22 endobj /Lang (EN-US) endobj endobj endobj /K 205 0 R << /K 14 << /K 152 0 R /P 8 0 R endobj /K [331 0 R 332 0 R 333 0 R 334 0 R 335 0 R 336 0 R 337 0 R 338 0 R 339 0 R 340 0 R /Pg 244 0 R /StructParents 5 46 0 obj Theranos' mission: a blood test requiring only a pinprick of blood, enough to run dozens of medical tests on the startup's hi-tech machines. /K 4 /Pg 239 0 R /Rotate 0 1343. /Contents [453 0 R 454 0 R 455 0 R] The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. 289 0 obj >> 324 0 R 325 0 R 326 0 R 327 0 R 328 0 R 329 0 R 330 0 R] << 55 0 R 56 0 R 57 0 R 58 0 R 59 0 R 60 0 R 61 0 R 62 0 R 63 0 R 64 0 R /Lang (EN-US) /S /LBody /Pg 235 0 R /StructParents 6 The boundless part of her visioning deserves extra attention. << /S /P /K 17 /Resources 440 0 R /S /LI endobj Follow Company. >> . /P 63 0 R 61 0 obj /S /LI /DropCap /Figure /S /LI << 307 0 obj /S /P /Lang (EN-US) /StructParents 22 << /Parent 5 0 R endobj >> Terry Masson (Founder and Chief Executive Officer). /Lang (EN-US) /S /LBody /Parent 14 0 R 294 0 obj 317 0 obj /Lang (EN-US) endobj >> /P 310 0 R endobj /P 8 0 R << /K [26 395 0 R] endobj 301 0 obj Ars may earn compensation on sales from links on this site. /K 186 0 R /S /LBody We all knew it was coming. /Lang (EN-US) endobj /Contents [497 0 R 498 0 R 499 0 R] /K 10 132 0 obj /S /LBody /Parent 14 0 R endobj endobj 87 0 obj 36 0 obj /P 270 0 R 234 0 obj Holmes, 34, of Los Altos Hills, Calif., founded Theranos in 2003. /K 47 /Rotate 0 >> /Annots [] /S /LI 22 0 obj << /K 150 0 R >> << endobj /Pg 254 0 R << /Pg 258 0 R 164 0 obj /K 26 9 0 obj /P 359 0 R x+ | /K 217 0 R /MediaBox [0 0 612 792] << >> >> endobj << /S /LI /Rotate 0 << >> /S /LBody /Lang (EN-US) /Pg 238 0 R endobj /S /LI null] >> /P 42 0 R 35 0 R 36 0 R 37 0 R 38 0 R 39 0 R 40 0 R 41 0 R 42 0 R 43 0 R 44 0 R /K 32 352 0 obj /K 25 /K 221 0 R /P 48 0 R /K 207 0 R /Lang (EN-US) /Lang (EN-US) /Lang (EN-US) /S /P /P 3 0 R /S /LBody << Theranos Mission Statement. endobj /Lang (EN-US) /Annots [] /S /P 52 0 obj /S /P /K 116 0 R /K 28 But constantly focusing on a desired future state may have the effect of giving extra highlight to the positives of a distant vision at the expense of the operational challenges that are taking place in the here and now. /P 273 0 R << >> /Pg 236 0 R >> << 79 0 obj << /P 55 0 R >> /K 29 >> endobj /K [18 385 0 R] /S /LBody Next to a perfectly dosed narrative of black turtlenecks, sprawling office facilities, glossy paper spreads and alluring marketing campaigns, the supposed Apple look-alike of the health technology industry tantalized investors and consumers with its mission, to facilitate the early detection and prevention of disease and empower people everywhere to live their best possible lives. Its no surprise that many bought into it. /Length 10 0 R >> /Pg 238 0 R /S /LI /MediaBox [0 0 612 792] 231 0 obj /Lang (EN-US) endobj 390 0 obj endobj /Resources 500 0 R >> 159 0 R null null null 160 0 R null null null 161 0 R null /Tabs /S endobj /Pg 235 0 R /K 232 0 R /P 33 0 R >> endobj 159 0 obj Theranos is a private health care and life sciences company with the stated mission to revolutionize medical laboratory testing through allegedly innovative methods for drawing blood, testing . /S /P >> << /S /LBody /Pg 255 0 R 2018-03-14T09:02:10-07:00 Theranos is headquartered in Palo Alto, CA. << << 179 0 obj endobj /S /LBody /K 1 82 0 obj /K 6 /Tabs /S 203 0 obj The Theranos founder intentionally deceived investors, a US . /Pg 253 0 R /P 50 0 R << endobj /Pg 245 0 R Theranos dissolved in September 2018 and founder Elizabeth Holmes now faces up to 20 years in prison for fraud and conspiracy. endobj null 24 0 R 25 0 R 26 0 R 27 0 R 28 0 R 29 0 R 30 0 R 31 0 R 32 0 R /Pg 236 0 R << >> /Lang (EN-US) /Resources 424 0 R /Pg 241 0 R 2 [null null 119 0 R null null null 120 0 R null null 41 0 R /Lang (EN-US) 239 0 obj The company grew to become a business worth billions. Theranos founder Elizabeth Holmes, now a mother of two, is asking to delay her 11-year sentence for felony fraud so she can be at home with her two young children while she appeals the conviction. /K 26 146 0 obj /K 9 endobj /S /LBody /Parent 11 0 R >> endobj /P 8 0 R /S /LI << /Lang (EN-US) 19 [null null 215 0 R null null null 216 0 R null null null /P 50 0 R /S /LI >> endobj << /S /L Did you ever provide financial projections to investors? Robert Leach, an assistant US attorney,asked Yam. 172 0 obj /K 125 0 R /K 2 /Creator (Acrobat PDFMaker 18 for Word) >> /S /LI /K 8 endobj endobj However, any sentence following conviction would be imposed by the court after consideration of the U.S. Theranos was a private health care company, with a mission to revolutionize lab testing through innovative methods for drawing blood, testing blood, and interpreting resulting patient data. /S /LBody /S /P /Pg 250 0 R 314 0 R 315 0 R 316 0 R 317 0 R 318 0 R 319 0 R 320 0 R 321 0 R 322 0 R 323 0 R 181 0 obj /K 122 0 R /S /L /Rotate 0 /Pg 244 0 R 284 0 obj 395 0 obj /Lang (EN-US) endobj >> 340 0 obj /Pg 248 0 R /P 8 0 R /P 8 0 R >> /P 50 0 R endobj << 264 0 obj << << /Pg 245 0 R /P 48 0 R /P 8 0 R 170 0 obj /K 123 0 R /K 223 0 R 1343. 227 0 R null null null 228 0 R null null] /K 166 0 R endobj /P 375 0 R /P 353 0 R /Pg 247 0 R /P 55 0 R /CropBox [0 0 612 792] /K 215 0 R /S /LI << /Pg 256 0 R /S /LI << It's unclear . /Contents [421 0 R 422 0 R 423 0 R] /Lang (EN-US) Tim De Chant endobj >> endobj 314 0 obj /MediaBox [0 0 612 792] If convicted, they could each face maximum penalties of 20 years in prisona $2.75 million fine and possiblyrestitution, the Department of Justice said. /P 8 0 R /Pg 242 0 R << 167 0 obj Last week, Zuckerberg was back with 3,000 words . /Lang (EN-US) /Lang (EN-US) A young (age-defying), pure-looking (evil-defying), masculine-sounding (stereotype-defying) female CEO speaking about Theranos unfulfilled feats in the present or past present tense, Holmes proposition was so enticing that she was able to assemble one of the most impressive boards in corporate America. endobj /Type /Pages /S /P /S /LBody /K 184 0 R << The story raised concerns about the accuracy of Theranos blood-testing technology, which put patients at risk of having conditions either misdiagnosed or ignored. /Length 502 0 R << /Lang (EN-US) /K [304 0 R 305 0 R 306 0 R 307 0 R 308 0 R 309 0 R 310 0 R 311 0 R 312 0 R 313 0 R /P 54 0 R /Pg 256 0 R A former Theranos employee who alerted regulators to fraud at the company said he popped a bottle of champagne after a jury returned guilty verdicts against founder Elizabeth Holmes on Jan. 3. /Lang (EN-US) /Lang (EN-US) Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. 39 0 obj << The Associated Press contributed to this report. /Annotation /Span endobj >> Nies was hired at Theranos in March 2015 for $185,000 a year to be the senior manager of customer service and call center operations at the company's headquarters in Palo Alto, Calif., according . /K 192 0 R << /S /LI 31 0 obj 328 0 obj /Type /Page /P 8 0 R By Elizabeth Lopatto / @ mslopatto. 120 0 obj /Pg 240 0 R /Pages 5 0 R /S /LI << Holmes fostered a culture of fear because it served her needs. 2018-03-14T09:02:10-07:00 /Lang (EN-US) /S /LBody endobj /S /LBody /CropBox [0 0 612 792] /Superscript /Span endobj Theranos' mission was "to make actionable health information accessible to people everywhere in the world, at the time they most need it." It was a lofty, inspiring, and valiantly unifying purpose, . >> /P 380 0 R /Lang (EN-US) << >> 277 0 obj /K 12 /P 267 0 R /P 8 0 R /Pg 257 0 R /P 48 0 R Mr. Balwani's lawyer started his opening statement by deflecting blame onto Ms. Holmes, who was the chief executive of Theranos. endobj << /K 132 0 R 322 0 obj /P 299 0 R /Lang (DE-DE) It was not only motivated blindness that may have triggered the slippery slope of unethical conduct at Theranos. << /MCID 2 /S /LI /StructParents 2 /K 34 /Tabs /S /P 8 0 R /P 295 0 R << /Pg 247 0 R /P 8 0 R /Lang (EN-US) /Annots [] 15 0 obj << >> /K 7 >> /S /LI /K 14 >> Using a "nanotainer" (a small device designed to draw, retain, and analyze a . /K 231 0 R /S /LBody 382 0 obj /K 6 /Resources 456 0 R /S /P /Pg 252 0 R << /S /LBody /Lang (EN-US) /CreationDate (D:20180314084127-07'00') 365 0 obj 180 0 R null null null 181 0 R null null null 182 0 R null Claiming and updating your company profile on Zippia is free and easy. Further, the indictment alleges that based on the defendants misrepresentations and omissions, many hundreds of patients paid, or caused their medical insurance companies to pay, Theranos, or Walgreens acting on behalf of Theranos, for blood tests and test results, sometimes following referrals from their defrauded doctors. /Pg 251 0 R << /StructParents 18 The parable of Elizabeth Holmes and her company, Theranos, is not an unfamiliar one. We calculated the performance score of companies by measuring multiple factors, including revenue, longevity, and stock market performance. /P 371 0 R << /K 126 0 R >> The engrossing optimism that this may have generated in its founder, Elizabeth Holmes, and other champions of the companys vision is understandable. Theranos founder Elizabeth Holmes arrives at San Jose court over alleged fraud. << >> The prosecution is the result of an investigation by the FDA Office of Criminal Investigations, the FBI, and the US Postal Inspection Service. A vision and its attached goals may inspire and motivate, but they can also severely contrive our ability to consider a broader set of possibilities or address contradictory information. >> endobj /S /P As company founder Elizabeth Holmes is sentenced to over eleven years in prison and TV adaptation The Dropout earns star Amanda Seyfried an Emmy, we reveal everything you need to know about the Theranos controversy. /S /LBody /K 18 It included jury selection, opening statements, released text messages, and an unexpected . /S /LBody 8 0 obj >> >> >> /P 297 0 R 213 0 obj /Pg 258 0 R 71 0 obj endobj endobj /Lang (EN-US) Acrobat PDFMaker 18 for Word /Pg 235 0 R /K 121 0 R /Pg 239 0 R /K 10 /P 48 0 R >> << /P 8 0 R /Lang (EN-US) /Pg 235 0 R >> The motion for release said that Holmes is not a flight risk and "is highly motivated to continue complying with her conditions of release sothat she can work with her lawyers while she pursues her appeal.".
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