Is Theranos still in business – Using the money she had set up for college expenses, Elizabeth Holmes could launch Theranos. After just two semesters at Stanford, Holmes famously left to start the firm. Holmes started Theranos to get wealthy, and for a while, she did; at one point, Forbes valued her at an astounding $4.5 billion.
Theranos was worth over $9 billion since it had raised over $700 million in funding. A new blood-testing procedure was advertised, but years of deception, misrepresentation of firm capabilities, and falsifying financial documents were hidden behind the curtain.
Disclosing severe claims against the corporation, Theranos filed for bankruptcy in September 2018.
David Taylor, the company’s general counsel and chief executive, emailed the company’s stockholders in early September 2018 to announce the company’s dissolution. The former CEO faced criminal fraud accusations by prosecutors, and shareholders were sure to find out sooner rather than later.
Theranos began dissolving itself three years after John Carreyrou’s expose in The Wall Street Journal revealed the company’s fraudulent practices.
In response, Elizabeth Holmes made several media appearances, but she could not eradicate the skepticism sown by John’s article. As a result, companies quickly began cutting links with Theranos in the following months, and the company eventually collapsed.
A multimillion-dollar agreement with the grocery store company Safeway fell through. Its relationship with Walgreens terminated only a short time after. Then, investors filed lawsuits against Theranos, accusing it of securities fraud, which was the beginning of its downfall.
Both Holmes and Theranos’s former president, Ramesh Balwani, were accused of enormous fraud by the SEC in 2018. As a result, Holmes was removed from her position as CEO and board member of Theranos, and she was required to turn up her shares to the firm. She was also banned from serving in any managerial capacity at a public company for ten years.
The most severe charge against Theranos was that the company intentionally misled individuals about their health status by sending them inaccurate test results. Despite mounting evidence to the contrary, Elizabeth Holmes denied she deliberately misled investors or patients.
According to John’s research, most Theranos employees had yet to learn of the company’s fraudulent operations, which the company’s upper management had arranged. As a result, once Theranos went bankrupt, thousands of people lost their employment. In addition, Holmes had fifty percent of the company’s ordinary shares, the lowest stock available to investors. As a result, only a few of the company’s early backers saw a return on their investment.
Fortress Investment Group now has the rights to the surviving Theranos patents.
Using the company’s patents as collateral, Fortress Investment Group put $100 million into Theranos in 2017. The terms of the agreement required Theranos to have a certain amount of cash on hand, but that amount needed to be made clear. As a result, the question, Is Theranos still in business, is frequently asked by people.
For this reason, Fortress bought Theranos and all of its patents, including the hundreds that Elizabeth Holmes is said to have created. Although it is true that Theranos no longer exists (as seen by the shutdown of its website), the company’s legacy lives on in the form of the patents that Elizabeth Holmes relied on to defend herself in court. Holmes and his legal team claimed that the patents established Theranos’s validity. So let’s discuss the answer to the question, Is Theranos still in business in detail?
The USPTO was investigated because of its allegedly careless and fraudulent patent grants to Theranos.
During 18 years, the USPTO issued 859 patents to Theranos, including 544 inventions that Elizabeth supposedly created. Although it is not unprecedented for an inventor to file for several patents, the USPTO should have looked into her processes for developing and commercializing her innovations.
To boost Elizabeth’s profile in the MedTech industry, Theranos most certainly inflated the number of projects she worked on. As a result, five additional patents were issued to Theranos by the USPTO in April 2019, over a year after the company’s dissolution.
Since signing away her entitlement to royalties, Holmes can now not benefit financially from Theranos’ patents. In addition, companies who want to sue Theranos over their IP may do so if they believe the company relies on patents that have been fraudulently or erroneously attributed to the incorrect creators.
Despite this, Elizabeth’s legal team moved to exclude evidence of Holmes’s alleged riches from the trial. The defense claimed that such disclosures would compromise the jury’s impartiality. Here’s what the proposal said:
The government’s provision of this evidence is not warranted in any way. This evidence is irrelevant to determining whether or whether Ms. Holmes participated in the fraudulent activities for which she is being prosecuted. Instead, “[it] encourages the jury to find Ms. Holmes guilty by improperly appealing to their emotions.”
The defense claimed that Holmes accepted a lesser compensation than her peers at Theranos. In addition, attorneys for Elizabeth said that Holmes’s stubbornness in not selling shares in the firm proved that she had no intention of personally profiting from the scheme.
The jury found Holmes guilty on four of the nine counts the prosecution had presented against her. Holmes is still accessible while her property is collateral for a $500,000 bail. It’s often assumed that Elizabeth is broke. How does she pay for a $135 million home in affluent Silicon Valley? Some people think she is dependent on her wealthy spouse.
The above-listed portion explains whether Is Theranos still in business in detail.
Read more: Is Theranos still in business? The company’s patents keep Theranos’s name alive.
