Theranos Founder Holmes Facing Fraud Charges
CBJ — Theranos founder Elizabeth Holmes is facing fraud charges brought against her and her company by the Securities and Exchange Commission. The company’s former president Sunny Balwani is also facing charges in what is being termed a massive fraud involving more than $700 million for allegedly making false claims about the company’s technology and its financial performance.
Holmes is willing to to relinquish control of Theranos and much of her stake in it. The SEC plans to take its case against Balwani to federal court in San Francisco.
Theranos is a Silicon Valley startup once valued at as much as $9 billion. It was formed in 2003 by then 19-year-old Elizabeth Holmes, who dropped out of Stanford University to launch the company. It was considered an industry disruptor that aimed to create cheaper, more efficient alternatives to traditional medical tests.
Elizabeth Holmes, who is now declined to comment through her attorney.