This article will discuss the recent dissolution of Theranos. We will also touch on Holmes’ conviction for fraud and the indictment of Lab director Sunny Balwani in a criminal investigation. In addition, we will examine Orphidia, a company that uses microfluidic chips to test blood.
Theranos dissolved in 2018
Theranos has been hanging by a thread since the explosive report detailing the erratic quality of blood tests. Its failure to find a buyer has forced the company to dissolve and pay its creditors with the money it has left. In an email to investors, the company announced its imminent demise. As a result, Theranos has laid off its workers and shuttered its website. Equity investments in the company have been rendered worthless. The Wall Street Journal reported that Theranos has breached a deal with Fortress Investment Group, which loaned the company $65 million last year.
Theranos, founded by Elizabeth Holmes, has been accused of defrauding investors. It claimed that it could carry out tests with just a pinprick of blood. The company owes $60 million in debt to its unsecured creditors and plans to hand over its assets to a credit and investment firm, foreclosed in 2018. However, it has not admitted to the allegations.
Holmes is currently facing criminal and civil fraud charges. She agreed to pay a $500,000 fine and is barred from serving as an officer or director of a public company for 10 years. The investigation into Theranos’ business practices lasted for two years, during which time Holmes and Balwani were indicted by the U.S. attorney’s office in California. As a result of these investigations, Holmes and Balwani ended their professional relationship.
Holmes has been charged with a felony charge of wire fraud. Her conviction means that she faces up to 20 years in federal prison. The trial will begin in September 2021. The jury is reportedly deadlocked on three other wire fraud charges against Theranos investors. In all, Holmes was found guilty of defrauding PFM Healthcare Master Fund of $38 million, Lakeshore Capital Management of nearly $100 million, and Mosley Family Holdings of $6 million.
Ultimately, the Wall Street Journal has reported that the company had been using an unapproved nanotainer in its tests. In response, the company has since halted its use of this device, but WSJ stands by its reporting.
Holmes convicted of fraud
At trial, Holmes acknowledged that she made some poor decisions, but insisted that Theranos was on the verge of a revolutionary medical breakthrough. However, the company’s much-hyped technology turned out to be a complete failure. Edison tests proved to be wildly inaccurate, and lab workers secretly started using more conventional methods.
Holmes is facing up to 20 years in prison. However, legal experts believe that the judge will most likely reduce that sentence, especially considering the vast amount of money that Holmes defrauded through the fake company. In addition, she has been able to rehabilitate herself since the scandal broke.
Despite her conviction, Holmes continues to work as the chairman of Theranos. She is expected to appeal the verdict. Upon receiving the sentence, Holmes will be barred from serving as a director or officer of a public company for 10 years. The charges stem from her lies and misrepresentations to investors and partners. While the company raised $1 billion in funding, its value reached almost $11 billion, with Tim Draper and Rupert Murdoch as backers, Holmes failed to disclose the truth. Eventually, Theranos folded, laid off all employees, and returned the remaining cash to creditors.
Holmes and Balwani were in a relationship for years before the company collapsed. Holmes met Balwani when they were teenagers, and they remained romantically involved until the company’s collapse in 2016. However, there are some differences between their accounts. Holmes claimed that Balwani bullied her, while Balwani said that the two were at odds about the company’s future.
The jury did not reach a unanimous decision on the three counts of the fraud at Theranos. The jury is now considering whether to indict Holmes on additional charges. Under federal law, prosecutors have the right to do so. In any case, Holmes must face sentencing for the crimes.
Prosecutors also alleged that Holmes manipulated the results of blood tests. Several patients said they believed their results were inaccurate and were not based on science. This led one woman to believe that she was having a miscarriage, only to find out that she was pregnant. Another patient thought that her cancer had returned after receiving a test. However, jurors found that Holmes did not mean to deceive her patients.
Lab director Sunny Balwani indicted in criminal probe
The Theranos dissolution case shook the biotech industry, highlighting the pitfalls of Silicon Valley greed. Holmes and Balwani were romantically involved and Holmes accused them of sexual abuse. Holmes and Balwani’s trials were eerily similar, including the fact that both prosecutors called the same witnesses.
Balwani’s attorneys argued that he acted in good faith, believing in his blood-testing technology and the company’s mission to make blood testing accessible to everyone. However, former employees testified that he created a hostile work environment, and the text message shows that he was aware of his role in fraud. As a result, Balwani has been indicted in the criminal case.
In January 2017, Ramesh “Sunny” Balwani was found guilty of wire fraud and conspiracy to commit fraud. He was Elizabeth Holmes’ ex-boyfriend and the company’s former COO. After a four-day trial, a jury found him guilty of all 12 criminal fraud charges. He faces up to 20 years in prison on each charge.
Balwani, 44, left Theranos in May 2016, after which the company voided two years of blood test results. As Holmes’ confidant, Balwani oversaw some of Theranos’s retail partnership with Walgreens, managed the company’s finances, and communicated directly with investors. He will be sentenced on Nov. 15.
Holmes and Balwani had forged a friendship during the trial and stayed in touch after the case. In fact, they lived together for a while. Holmes moved into his house after dropping out of Stanford, and the two became friends. In 2009, Balwani became Theranos’ president and chief operating officer.
Balwani’s defense called two witnesses and maintained that he acted in good faith. He claimed that prosecutors cherry-picked some evidence to support their claims. If convicted, Balwani faces 20 years in prison, a $250,000 fine, and restitution for each count. Holmes and Balwani will be sentenced by the court in November.
Theranos Dissolve Lab was a darling of Silicon Valley for years. However, the company was in trouble after the Wall Street Journal’s expose. The company was valued at $10 billion. After the scandal broke, the Wall Street Journal ran an article on the company’s operations, and Holmes appeared on “Mad Money” to do damage control.
Orphidia uses microfluidic chips to test blood
A microfluidic chip is an electronic device that contains a laboratory on a chip. It enables doctors to measure the concentration of multiple proteins and other substances in a sample of blood. These chips can measure the quantity of specific antibodies in blood. This can be helpful in detecting diseases that can cause connective tissues to swell and bleed.
The ‘organ-on-chip’ model is a unique device that is portable and can mimic the biochemical and structural properties of human organs. This technology can reduce the use of animal models and help researchers develop new drugs and treatments. The technology may also be used to detect contamination in water.
Microfluidics is a new technology that can transform the way labs work. It is particularly attractive for blood analysis due to its miniaturization. These devices can provide comprehensive blood diagnostics and may even allow for better drug matching. They can also deliver fast, accurate results that are clinically acceptable.
Blood analysis is an important aspect of medicine and research. Traditional blood analysis methods are expensive and require skilled technicians to process samples. Moreover, they can introduce artifacts. Microfluidic devices solve these issues by allowing the cell microenvironment to be controlled accurately, while only a small volume of blood is required.
