ELIZABETH HOLMES VENTURE CAPITALISM SOFTWARE
ELIZABETH HOLMES VENTURE CAPITALISM SERIES

It was something that former Theranos employee and senior software engineer Michael Craig found difficult to believe. In never-before-broadcasted depositions, attorneys for the Securities and Exchange Commission ask Holmes questions about whether she helped orchestrate an 'elaborate, years-long fraud.' During her deposition, Holmes kept repeating the same thing - variations of 'I don't know specifically' or 'I'm not sure' - more than 660 times. Under oath, Holmes' typical assured demeanor was replaced with timidness and she claimed ignorance to much of the goings on at the company. Their claims about their secret, groundbreaking technology that was made to patients, to investors and to the public, were under fire. Over three days for eight hours each day, SEC attorneys interrogated Holmes and Balwani separately.

Theranos had to void tens of thousands of its test results, but still managed to keep its doors open.īut by summer 2017, the SEC was investigating Theranos, Holmes and Balwani. Regulators from The Centers for Medicare and Medicaid determined Theranos' quality controls were so deficient they posed an immediate risk to patient health and safety. Investors and patients also were bringing their own class-action lawsuits. Walgreens and Theranos settled for an undisclosed sum with no finding or admission of liability. Walgreens had terminated its contract with Theranos in June 2016 and, eventually, sued for $140 million, claiming Theranos had 'failed to meet the most basic quality standards and legal requirements of the contract,' according to court filings. 'I will say there are some very powerful people going after that poor woman, and she is doing such a great thing for humanity and we should all support her,' Draper told Jarvis at the time.īy 2016, Holmes' group of supporters was shrinking.

ELIZABETH HOLMES VENTURE CAPITALISM SERIES

A series of explosive articles by Wall Street Journal investigative reporter John Carreyrou had pushed questions about whether Theranos' technology really worked into mainstream media coverage.īut even with all this happening, venture capitalist Tim Draper, one of Holmes' earliest investors, passionately defended her in 2016 when he spoke to ABC News Chief Business, Technology and Economics Correspondent, and host of 'The Dropout,' Rebecca Jarvis. The relationship was over, and the adoring publicity for her and her startup had been replaced with intense skepticism. I don't think it happened in one moment, but it was very clear that we were colleagues,' Holmes said in her deposition.

and the sort of romantic piece that was there at the very beginning died. 'Once we started working together, it was a very intense working relationship. In Elizabeth Holmes' 2017 deposition with the Securities and Exchange Commission, obtained by ABC News and featured on 'The Dropout,' Holmes said her and Balwani's decision to end their relationship was mutual.

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