ARTICLE | Company News

SEC charges Theranos with fraud

March 16, 2018 6:41 PM UTC

The SEC charged blood-based diagnostic company Theranos Inc. (Palo Alto, Calif.), its founding CEO Elizabeth Holmes and former President Ramesh Balwani with fraudulently raising more than $700 million by exaggerating or making false statements to investors about its technology, business and financial performance.

Theranos claimed its portable blood analyzer could conduct comprehensive blood tests from finger drops of blood. The SEC's complaint alleges the product could in fact complete “only a small number of tests” and that Theranos conducted most tests on modified and standard commercial analyzers from other manufacturers. The complaint also charges Theranos, Holmes and Balwani with exaggerating a company revenue estimate and claiming falsely that its products would be used by the U.S. Department of Defense...

BCIQ Company Profiles

Theranos Inc.