Theranos and CEO Elizabeth Holmes committed 'massive fraud,' SEC alleges
Four years ago, the Silicon Valley firm Theranos Inc. was valued at $9 billion and its founder and Chief Executive Elizabeth Holmes was hailed as a potentially revolutionary force in the blood-testing industry.
In fact, the U.S. Securities and Exchange Commission says now, the company that wowed a star-studded cast of investors and board members was conducting a "massive fraud" in which its proprietary technology never worked as advertised.
On Wednesday, the embattled Newark, Calif., company and Holmes agreed to settle the SEC's charges, stemming from what the agency called exaggerated or false statements about Theranos' business, technology and financial performance.
Holmes agreed to give up majority voting control over the company she founded in 2003 and will reduce her equity in Theranos, according to an SEC statement. She will
