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Elizabeth Holmes Found Guilty on 4 of 11 Charges
Elizabeth Holmes found guilty on 4 of 11 charges:
Elizabeth Holmes was convicted today of three counts of criminal wire fraud and one count of criminal conspiracy to commit wire fraud. The jury delivered its verdict after six days of deliberation.
The government's victory in the case is a rare rebuke for tech startups, which often pitch investors on their technological prowess and business acumen using wildly optimistic assumptions.
Theranos was, perhaps, an extreme example, raising over $900 million on the back of claims that its proprietary tests were better, cheaper, and less invasive than the competition. None of those claims was true, and unlike many other Silicon Valley startups, the health and safety of patients was on the line.
Holmes was found guilty of defrauding Lakeshore Capital Management (the family office of the DeVoses) of $100 million, PFM Healthcare (a hedge fund) of $38 million, and an LLC connected to Daniel Mosley (Henry Kissinger's former estate attorney) of $6 million. She was also convicted of conspiracy to commit wire fraud against Theranos investors more generally. On three charges, all alleging wire fraud against investors, the jury returned no verdict. Holmes was acquitted of all other charges, including those that involved defrauding patients. She faces up to 20 years in prison.
With the guilty verdict, Holmes, the founder of the company, is the first Theranos executive to be held criminally responsible for her actions, though she may not be the last.
(Score: 3, Interesting) by Runaway1956 on Wednesday January 05 2022, @03:00PM (1 child)
First, the whole oxycontin thing. Now Theranos and Holmes. Couple that with Google and Facebook being slapped around in the EU, and possibly in the US soon. Yes, things are looking up. It's time for Big Business to take another look at all their "business models". People don't like being ripped off again and again.
I've got an idea for a business model! How 'bout you just produce some product or service, and sell it at an honest price? No bullshit, no hype, no sneaky contracts and EULAs - just offer your product, sell it if you find buyers, and leave it at that! And honor that whole 'first sale' thing, and the right to repair.
I'm dreaming though. We have a long way to go before Big Tech and Corporate America are put in their places.
(Score: 2) by DannyB on Wednesday January 05 2022, @04:52PM
It seems like building some product or offering some service, and then trying to do your very best at it, is a time honored way of doing business.
Problem: some people just want to get rich without actually working.
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