Theranos Inc., Elizabeth Holmes, and Ramesh Balwani Charged with Fraud


The SEC charged Theranos Inc., CEO Elizabeth Holmes, and its former President Ramesh “Sunny” Balwani last week over fraudulent statements made to investors that racked in over $700 million and 18.9 million shares for the tech company since 2015.

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Holmes and Balwani have not admitted nor denied allegations regarding their misleading statements on a new product, but have agreed to settle the fraud charges levied against them. Theranos Inc. gave false product demonstrations, exaggerated statements to investors, and created misleading media articles about a new portable blood analyzer they created.

The company promoted the technology as a laboratory tested product that could conduct comprehensive blood tests via finger prick, giving investors inaccurate information such as the military already putting the product to use in Afghanistan, with a promised generated revenue of $100 million.

In truth, the product had never been deployed and was projected to bring in a mere $100,000. Information given by Theranos regarding the technology has been wildly debunked by multiple sources, leading to lawsuits with involved companies such as Walgreens and Partner Fund Management.