All companies Technology · Written with AI

What actually happened atTheranos

Theranos convinced statesmen, investors, and pharmacies that a drop of blood could run hundreds of tests — a claim its own devices could not meet, and one that ended in a federal fraud conviction.

First work2003
Founded2003
OriginPalo Alto, California
StatusDissolved in 2018; Holmes and Balwani convicted of fraud and imprisoned.
Sources5 items
On the record

When did Theranos become fraud rather than failure — and who knew?

She believed in the technology and its promise; ambition and mistakes, not intent to deceive.

Elizabeth Holmes (defense), 2022 · 1 source

Holmes and Balwani knowingly misrepresented the technology to investors and patients; the jury convicted on the investor counts.

Prosecutors, whistleblowers, and the jury, 2022 · 2 sources
This answer rests on
Elizabeth Holmes
Founder · statement · 2022
Tyler Shultz
Early Employee · statement · 2022
Reporting & filings
Documents cited · 2 items
The people

Who was actually there, and when

Elizabeth Holmes
Founder2003 — 2018
No account

Founder and CEO; the face of Theranos who raised hundreds of millions and built a celebrity board — and was convicted of defrauding investors.

Ramesh 'Sunny' Balwani
Executive2009 — 2016
No account

President and COO (and Holmes's secret romantic partner) who ran operations; separately tried and convicted of fraud.

George Shultz
Board Member2011 — 2016
No account

Former U.S. Secretary of State; a marquee board member whose prestige lent Theranos credibility. His grandson, Tyler Shultz, became a whistleblower.

Tyler Shultz
Early Employee2013 — 2014
No account

Employee (and George Shultz's grandson) who raised internal concerns and became a key whistleblower to the Wall Street Journal, at great personal cost.

John Carreyrou
Contributor2015 — present
No account

Wall Street Journal reporter whose 2015 investigation exposed that Theranos's technology did not work as claimed; later wrote 'Bad Blood.'

0 of 5 have put their version on the record.

The money

Who funded it, and who bought it

Private investors
Private investors
Private rounds lead · 2013
Timeline

What happened, in order

20031 event
Full year

Elizabeth Holmes founds Theranos

Holmes drops out of Stanford at 19 to build a company promising cheap, painless blood tests from a single drop.

Theranos
20131 event
Sep

Walgreens partnership and public launch

Theranos launches finger-prick testing inside Walgreens stores and goes public with its story, backed by a prestigious board. Its valuation soars toward ~$9B.

Theranos
20141 event · 1 contested
Full year

Insiders raise the alarm

Contested · 2 accounts

Theranos claimed its devices could run many tests from a finger-prick; they could not. It ran most tests on modified commercial machines, not its own technology. Insiders warned that the technology didn't work; the WSJ exposed it in 2015. Holmes and Balwani were convicted of fraud (investor counts) in 2022.

Unresolved: The precise point at which optimism crossed into deception.

Hot Startup Theranos Has Struggled With Its Blood-Test Technology
20151 event · 1 contested
Oct

The Wall Street Journal exposé

Contested · 2 accounts

Theranos claimed its devices could run many tests from a finger-prick; they could not. It ran most tests on modified commercial machines, not its own technology. Insiders warned that the technology didn't work; the WSJ exposed it in 2015. Holmes and Balwani were convicted of fraud (investor counts) in 2022.

Unresolved: The precise point at which optimism crossed into deception.

Hot Startup Theranos Has Struggled With Its Blood-Test Technology
20182 events
Mar

SEC charges Holmes with fraud

The SEC charges Holmes and Balwani with 'massive fraud'; Holmes settles the civil charges, is barred from public-company leadership, and gives up control.

SEC Charges Theranos, CEO Holmes, and Former President Balwani With Massive Fraud
Sep

Theranos dissolves

After criminal indictments in June 2018, Theranos ceases operations and dissolves.

Theranos
20211 event · 1 contested
Full year

Elizabeth Holmes (defense)'s claim

Claim — not established history

That she genuinely believed in the technology and did not intend to defraud anyone — that Theranos was a failure, not a fraud.

Claimed by Elizabeth Holmes (defense), 2021
Response — The jury and prosecutors

The jury convicted Holmes of defrauding investors, finding she knowingly made false claims; the verdict rejected the 'failure, not fraud' defense on the investor counts.

Partially resolved
Elizabeth Holmes Sentenced To More Than 11 Years For Defrauding Theranos Investors
20222 events · 1 contested
Jan

Holmes convicted of fraud

Contested · 2 accounts

Theranos claimed its devices could run many tests from a finger-prick; they could not. It ran most tests on modified commercial machines, not its own technology. Insiders warned that the technology didn't work; the WSJ exposed it in 2015. Holmes and Balwani were convicted of fraud (investor counts) in 2022.

Unresolved: The precise point at which optimism crossed into deception.

Elizabeth Holmes Sentenced To More Than 11 Years For Defrauding Theranos Investors
Elizabeth Holmes to spend 11 years in prison for Theranos fraud
Nov

Holmes sentenced to 11+ years

Holmes is sentenced to more than 11 years (135 months) in prison for defrauding investors of hundreds of millions; Balwani receives a longer sentence.

Elizabeth Holmes Sentenced To More Than 11 Years For Defrauding Theranos Investors
Elizabeth Holmes to spend 11 years in prison for Theranos fraud
Where are they now

The beginning reads differently once you know the end

Elizabeth Holmes

Convicted of investor fraud; sentenced to 11+ years in prison.

Sunny Balwani

Convicted separately; sentenced to a longer term.