Elizabeth Holmes, the founder and former CEO of Theranos, was once hailed as the next Steve Jobs. Her revolutionary invention, the Edison, promised to revolutionize the medical industry by providing cheap and accurate blood testing with just a few drops of blood. However, her meteoric rise was followed by an equally dramatic fall, as the truth behind Theranos and its technology came to light.

The Early Days of Theranos

Elizabeth Holmes founded Theranos in 2003, while she was still a student at Stanford University. Her idea was to create a portable device that could perform a wide range of blood tests with just a few drops of blood, making blood testing more accessible and affordable for everyone. She dropped out of college and devoted herself full-time to her company.

Theranos quickly gained traction, and Holmes was able to raise millions of dollars from investors. She also managed to secure partnerships with major retailers, such as Walgreens, to provide Theranos testing services in their stores.

The Fall of Theranos

However, in 2015, investigative journalist John Carreyrou published an article in the Wall Street Journal that raised serious questions about the accuracy and reliability of Theranos’ technology. Carreyrou’s investigation revealed that the Edison device was not able to perform all the tests that Theranos claimed it could, and that the company had been using traditional blood testing methods to run most of its tests.

Theranos and Elizabeth Holmes were soon under investigation by the SEC and the DOJ. In 2018, Holmes and former Theranos president Ramesh “Sunny” Balwani were charged with “massive fraud” by the SEC. Holmes settled with the SEC, agreeing to pay a $500,000 fine and give up control of Theranos, while Balwani is currently facing trial.

The Aftermath

The downfall of Theranos and Elizabeth Holmes has been described as one of the biggest corporate scandals of the 21st century. The company has since dissolved, and Holmes has been banned from running a public company for ten years.

The tragedy of Theranos is not just the loss of billions of dollars for investors, but also the fact that the company’s false promises may have led to patients receiving inaccurate medical results, potentially putting their health at risk.