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Theranos Faces Congressional Inquiry Over Faulty Blood Tests (techcrunch.com)
An anonymous reader writes: The U.S. House of Representatives sent a letter to blood analysis startup Theranos asking for them to explain their failure in providing accurate results to patients using its proprietary blood test technology. The company has faced serious backlash after government and regulatory agencies questioned the results of their proprietary 'Edison' machine, that the company claimed could detect hundreds of diseases using a single drop of blood. Not only have the feds proposed banning founder and CEO Elizabeth Holmes and the company president Sunny Balwani from the blood-testing business for two years, but Holmes' net worth has been cut from $4.5 billion to zero. Most recently, Walgreens decided to cut ties with the company. House Democrats Frank Pallone, Gene Green and Diana DeGette sent the letter on June 30th, asking Holmes to explain what went wrong, what steps the company is taking to help medical professionals and patients who might have been affected by the manipulated results, and how Theranos plans to comply with regulators. "Given Theranos' disregard for patient safety and its failure to immediately address concerns by federal regulators, we write to request more information about how company policies permitted systemic violations of federal law," reads the letter. Theranos says it plans to clear things up with these lawmakers.
How in the world did these people get a license to begin with? Well. now we got this, and the MRI fiasco. I'm trying to figure out what's next on the list.
“He’s not deformed, he’s just drunk!”
The other possibility is that she also was played. You see this regularly in the property developer market - banks need someone charismatic to lend money too (which creates profit for them), but who is stupid/egoist enough to not wonder why this friendly bank guy is giving them all this money. The banks charm them into securing whatever earthly possessions they and their grandma have against these loans, and ensure the bank is first tier lender. While things are booming this money feeding machine makes the banks huge profits. When the bubble pops, the banks quickly liquidate the guy, recover their part of the loans, and leave the second tier lenders and bankrupted developer to wear the losses.
If she didn't setup a private trust and move a few million into it when she was a billionaire, then she really does seem like the sort of gullible charismatic puppet bubble investors look for.