The dramatic ascent and downfall of the blood testing company Theranos has played out in the public eye in spectacular fashion. And some think the blame can be placed not only on founder and Chief Executive Elizabeth Holmes, but also on the media which created so much hype around the company.
“We were all excited about the possibility [of Theranos],” said Marco Della Cava, technology and culture writer at USA Today, who conducted one of the first interviews with Holmes back in July 2014. “Did we understand phlebotomy? Did we understand what sort of devices she was creating? Probably not.”
And when journalists did ask probing questions, they were met with “convoluted and confusing statements and also they chalked it up to ‘this is trade secrets,’” said Polina Marinova, Associate Editor at Fortune magazine, which did a cover piece on Holmes that June.
Holmes convinced investors that Theranos’ technology could analyze a single drop of blood, which would revolutionize the healthcare industry. Holmes, a Stanford dropout, got millions of dollars in backing from the likes of Rupert Murdoch, and at 19 she was declared the youngest self-made billionaire in the world. At its peak, the company was worth $9 billion.
The problem was the technology she was peddling didn’t actually work. And eventually the illusion shattered.
On Wednesday, Holmes and Theranos’ former President Ramesh “Sunny” Balwani were charged with “massive fraud” by the Securities and Exchange Commission. As part of her settlement, Holmes will have to return her shares in the company, pay a $500,000 fine, and be barred from serving as president or director of a public company for 10 years. Balwani didn’t reach an agreement.
Going forward, a fraud of this scale “will make it harder for [other] biotech companies to raise money,” said Marinova. “At least it’s going to prompt investors to ask more probing questions when they’re doing their due diligence.”
Ford is recalling more than 355,000 of its pickup trucks across the U.S. because of an instrument panel display failure that’s resulted in critical information, like warning lights and vehicle speed, not showing up on the dashboard.
Nvidia reported a 56% increase in second-quarter revenue and a 59% rise in net income compared to a year ago.
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Netflix CEO Ted Sarandos claims audiences don't want to watch Netflix movies in theaters, but that seems not to be the case recently.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
