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Questions and Answers
What were the charges against Holmes and Balwani?
What were the charges against Holmes and Balwani?
What was the length of Holmes' prison sentence?
What was the length of Holmes' prison sentence?
What significant technological claim did Holmes' company promote?
What significant technological claim did Holmes' company promote?
On how many counts was Balwani convicted?
On how many counts was Balwani convicted?
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What was a critical factor in Holmes' trial?
What was a critical factor in Holmes' trial?
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What breakthrough technology did Theranos claim to have developed?
What breakthrough technology did Theranos claim to have developed?
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What was Elizabeth Holmes's role at Theranos?
What was Elizabeth Holmes's role at Theranos?
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What was the outcome for Elizabeth Holmes after the fraud allegations?
What was the outcome for Elizabeth Holmes after the fraud allegations?
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Which media figure investigated Theranos's technology claims?
Which media figure investigated Theranos's technology claims?
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How much funding did Theranos raise at its peak?
How much funding did Theranos raise at its peak?
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What was the estimated personal net worth of Elizabeth Holmes before the fall of Theranos?
What was the estimated personal net worth of Elizabeth Holmes before the fall of Theranos?
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What common challenges did Theranos face after the validity of its technology was questioned?
What common challenges did Theranos face after the validity of its technology was questioned?
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When was Theranos officially dissolved?
When was Theranos officially dissolved?
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What was the main argument of Holmes' lawyers regarding her punishment?
What was the main argument of Holmes' lawyers regarding her punishment?
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What was the primary basis for Holmes being found not guilty on certain counts?
What was the primary basis for Holmes being found not guilty on certain counts?
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What significant feature did Holmes' company claim to offer in medical testing?
What significant feature did Holmes' company claim to offer in medical testing?
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How long was Balwani's prison sentence compared to Holmes' sentence?
How long was Balwani's prison sentence compared to Holmes' sentence?
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What characterized the public's perception of Holmes and her company's claims?
What characterized the public's perception of Holmes and her company's claims?
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What was a key factor that led to the investigation of Theranos's technology?
What was a key factor that led to the investigation of Theranos's technology?
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What was the peak valuation of Theranos in 2013 and 2014?
What was the peak valuation of Theranos in 2013 and 2014?
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Which company is known for claiming to provide zero-emission trucks but faced legal consequences for its actions?
Which company is known for claiming to provide zero-emission trucks but faced legal consequences for its actions?
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During which year did a significant turning point occur for Theranos when its technology was questioned?
During which year did a significant turning point occur for Theranos when its technology was questioned?
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What ultimately happened to Theranos in September 2018?
What ultimately happened to Theranos in September 2018?
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What contributed to the drop in Elizabeth Holmes's net worth from $4.5 billion to nothing?
What contributed to the drop in Elizabeth Holmes's net worth from $4.5 billion to nothing?
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What type of health technology was Theranos focused on developing?
What type of health technology was Theranos focused on developing?
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What common issue did both Theranos and Nikola share regarding their founders?
What common issue did both Theranos and Nikola share regarding their founders?
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What was the primary argument made by Holmes' lawyers for a lighter sentence?
What was the primary argument made by Holmes' lawyers for a lighter sentence?
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What crucial aspect of the trial focused on determining Holmes' guilt?
What crucial aspect of the trial focused on determining Holmes' guilt?
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How many counts was Balwani convicted of in total during his trial?
How many counts was Balwani convicted of in total during his trial?
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What was a significant element contributing to the skepticism surrounding Holmes' company?
What was a significant element contributing to the skepticism surrounding Holmes' company?
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What was the duration of Balwani's prison sentence following his conviction?
What was the duration of Balwani's prison sentence following his conviction?
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What significant factor contributed to the eventual legal challenges faced by Theranos?
What significant factor contributed to the eventual legal challenges faced by Theranos?
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Which individual played a pivotal role in highlighting the fraud occurring at Theranos?
Which individual played a pivotal role in highlighting the fraud occurring at Theranos?
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What was the primary outcome for Theranos following the investigations into its technology?
What was the primary outcome for Theranos following the investigations into its technology?
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What was a notable financial consequence for Elizabeth Holmes as a result of the Theranos scandal?
What was a notable financial consequence for Elizabeth Holmes as a result of the Theranos scandal?
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What was the peak valuation of Theranos, which contributed to its initial investor appeal?
What was the peak valuation of Theranos, which contributed to its initial investor appeal?
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What commonality exists between Theranos and Nikola in terms of corporate behavior?
What commonality exists between Theranos and Nikola in terms of corporate behavior?
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Which specific group was NOT involved in the legal challenges against Theranos?
Which specific group was NOT involved in the legal challenges against Theranos?
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What year marked a significant turning point in exposing Theranos's fraudulent practices?
What year marked a significant turning point in exposing Theranos's fraudulent practices?
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Study Notes
Theranos
- Theranos was a healthcare company founded by Elizabeth Holmes in 2003.
- The company claimed to have developed a revolutionary blood testing technology that could perform hundreds of tests using a single drop of blood.
- Theranos raised over 700millionfrominvestors,achievingavaluationof700 million from investors, achieving a valuation of 700millionfrominvestors,achievingavaluationof10 billion at its peak.
- These claims were later proven to be false.
- In 2015, investigations by medical professionals and journalists exposed the company's false claims, leading to legal and commercial challenges.
- The company faced legal actions from the U.S. Securities and Exchange Commission (SEC), the Centers for Medicare and Medicaid Services (CMS), state attorneys general, and former business partners.
- By 2018, Forbes estimated that Holmes's personal net worth had dropped from $4.5 billion to nothing.
- In 2018, Theranos, Holmes, and former president Sunny Balawani were charged with fraud by the SEC.
- Holmes was found guilty on four counts of fraud in 2022 and sentenced to 11 years and 3 months in prison.
- Balwani was convicted on all 12 counts against him in 2022 and sentenced to 12 years and 11 months in prison.
Elizabeth Holmes
- Holmes was the founder and former CEO of Theranos.
- Her company promised to revolutionize the medical industry with a breakthrough blood testing technology, but these claims were false.
- Holmes's trial focused on whether she knew she was providing false information about the company's technology.
- She was found not guilty on two counts of defrauding patients and one count of conspiracy to defraud patients.
Theranos
- Theranos was an American company founded in 2003, aimed at revolutionizing blood testing.
- The company claimed to use small blood samples for a wide range of tests, performed by compact devices.
- Theranos raised over $700 million from investors, achieving a $10 billion valuation at its peak.
- The reality was that Theranos's technology was ineffective and inaccurate.
- Investigations by researchers, journalists, and authorities exposed the company's deception.
- In 2018, the SEC charged Theranos, Elizabeth Holmes, and Sunny Balwani with fraud.
- Holmes was found guilty on four counts of fraud and sentenced to over 11 years in prison.
- Balwani was convicted on all 12 counts and sentenced to over 12 years in prison.
- The case highlights the dangers of believing in unproven scientific advancements without sufficient scrutiny.
- Theranos was dissolved in 2018 after years of legal battles and sanctions.
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Description
Explore the rise and fall of Theranos, a healthcare startup founded by Elizabeth Holmes that made bold claims about revolutionary blood testing technology. This quiz covers key events from its inception, massive funding, to legal challenges and convictions related to fraud. Test your knowledge about this significant case in business history.
