The founder of a US start-up that promised to revolutionise blood testing has agreed to settle charges that she raised over $700m (£500m) fraudulently.
The Securities and Exchange Commission, a top US financial regulator, saidElizabeth Holmes and Theranos deceived investors about the firm's technology.
The agency also said the firm had falsely claimed its products had been used by the US army in Afghanistan.
Ms Holmes will lose control of the firm and be fined $500,000.
An SEC official called the fallout an "important lesson for Silicon Valley".
"Innovators who seek to revolutionise and disrupt an industry must tell investors the truth about what their technology can do today - not just what they hope it might do someday," said Jina Choi, director of the SEC's San Francisco regional office.
Theranos was founded in 2003 when Ms Holmes was only 19, and sought to develop an innovative blood testing device.
More
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
1 comment:
I dated a guy a long time ago what bought into some investment that was advertised on the internet. Couple thousand. I told him he was an idiot.
Post a Comment