I’ve written here before about the likelyhood that blood testing company Theranos (once valued at $9 billion) was a fraud, and that heralded Stanford drop out CEO Elizabeth Holmes, soon to no longer be the youngest “self made” billionairess is likely in a lot of trouble.
TL:DR version: Theranos makes a blood testing tool called “Edison” that is supposed to need only a few drops of blood as a sample to perform complex medical tests. The device basically doesn’t work. Theranos and Holmes got rich over the hype of this vaporware. Customers have been harmed, and Walgreens wants their money back.
Somehow, things just keep getting worse for Theranos. Elizabeth Holmes’s flailing blood-testing start-up, which is already facing scrutiny from regulators and a federal criminal investigation, just got hit with two class-action lawsuits, too.
The first suit, which was filed on Wednesday in Northern California by an Arizona man, accuses Theranos of consumer fraud. It argues that the start-up—which boasts a $9 billion valuation—falsely marketed its diagnostic testing technology, Edison, to consumers. The legal blow comes roughly one week after Theranos lost its last leg to stand on when the start-up admitted to voiding two years’ worth of blood tests due to inaccuracies. The class-action suit claims that as a result of the voided blood tests, “tens of thousands of patients may have been given incorrect blood-test results, been subject to unnecessary or potentially harmful treatments,” Fortune reports.
The second suit, which was also filed in Northern California just one day after the first on Thursday, accuses Theranos of breaching its contract with the plaintiff by “providing tests that were not of the promised high level of accuracy and quality” and for “conducting tests using traditional blood testing methodologies and equipment instead [of] its self-proclaimed minimally invasive state-of-the art proprietary system.”
She is now dealing with two class action lawsuits that will likely end up with damage awards far exceeding the company balance sheet and a Federal Criminal Investigation.
Worse, their big customer, Walgreens, apparently brought into their vaporware without even doing any research, buying totally into the hype of the Steve Jobs in a skirt. Which is going to lead to legal problems for them as well as their own inevitable lawsuits against Holmes and Theranos.
About the only hope Mizz Holmes (who is a flaming socialist) is for Hillary Clinton to become President. But even Her Royal Thighness has been distancing herself from the trainwreck that is Theranos.
Chief executive Elizabeth Holmes was scheduled to host a fundraiser for Hillary Clinton at Theranos’s headquarters in Silicon Valley on Monday. But in an abrupt about-face, the campaign relocated the event to the private home of a tech entrepreneur.
Yep, Holmes and Theranos have raised money for both her campaign and the Crime Family Foundation.
So, will Elizabeth Holmes, once the youngest “self made” billionairess become the first former billionairess in Federal Prison?
As I’ve said before, Theranos has what sounds like a good idea in medical technology. One that is clearly not ready for actual use that needs years if not decades of further research and development.