The Fall of Theranos: Fraud, Not Failure
Does Silicon Valley’s trial of the century signal change for the culture of startups?
First they think you’re crazy, then they fight you, then… you get found guilty of committing wire fraud to the tune of billions of dollars.
One of the most enthralling business sagas of all time has drawn to a close, at least for now. Elizabeth Holmes, founder of the now-defunct blood-testing startup Theranos and one time “next Steve Jobs,” has been found guilty on four counts of wire fraud against investors. The other seven charges, including further counts of wire fraud against investors and patients, returned not guilty or deadlocked verdicts. The decision arrived after 50 hours of jury deliberation across 7 days, on the back of a grueling trial that lasted over 3 months. She faces up to 20 years of prison time for each count.
At the heart of the case was the question, was Holmes guilty of failure or fraud? More so, even if there was fraud at play, was it committed with intent?
The prosecution called twenty-nine witnesses and produced a mountain of evidence in the form of text messages, emails and misleading company documents to show that Holmes knew her company’s devices could not perform to the capacity she was selling to potential investors. Former…
