Question
Theranos breached the most basic quality standards and legal requirements by providing inaccurate and unreliable blood test results. The company claimed to have developed a revolutionary technology that could perform a wide range of tests with just a few drops of blood. However, it was later revealed that the technology was flawed and the results were often incorrect. This led to a series of lawsuits from investors and partners, and eventually, the company had to void a million tests and pay millions in reimbursements. The exact details of how they managed to bypass the regulations and quality checks for so long are still unclear, but it's evident that there was a significant lack of oversight and due diligence.
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This was the last straw for Theranos's investors. Partner Fund which had invested almost $100 million sued Theranos, Elizabeth and Sunny for deceit. Another set of investors filed a separate lawsuit alleging securities fraud. Most investors, however, settled for an extra grant of shares in exchange for promising not to sue. Rupert Murdoch sold his shares back to Theranos for one dollar to claim a tax write-off. The law firm Boies and Schiller stopped its work for Theranos. Walgreens filed a lawsuit alleging that Theranos breached the "most basic quality standards and legal requirements". The firm agreed to pay $ 4.65 million to reimburse 76,217 people who had taken blood tests. The number of tests Theranos voided reached 1 million. What cannot be measured, however, is the damage that could have been caused had Theranos gone ahead with its nationwide rollout.
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