Former Theranos Employees File Massive Fraud Lawsuit Against CEO Elizabeth Holmes

Original Article:

Elizabeth Holmes, who founded the famously secretive biotech company Theranos, is accused in a lawsuit of fraudulently hiding problems with the blood screening technology she used to the pitch hundreds of millions of dollars worth of funding to her investors.

The lawsuit, filed by former Theranos employees against Holmes and the company on Monday, is the first formal allegation by a former employee that Holmes and the rest of the Theranos board knew of the various faults with the company’s technology.

The suit alleges that Holmes is responsible for creating an atmosphere of secrecy at Theranos in order to “strong arm” company executives to hide problems and mislead investors.

Shortly after being listed as the 14th most powerful woman in the world by Forbes in October 2014, Holmes rode the momentum of her new fame to an impressive profile, netting a reported $4.5 billion — which made her one of the richest women in the world.

While many of the explanations for her initial rise to fortune were given as Forbes reporters, it was the newly found effectiveness of Theranos’s urine testing kits for breast cancer and other diseases that seemed to spark the most outrage.

The company claimed that it had developed an incredibly accurate, portable blood test that would make it unnecessary for people to undergo a traditional lab test and shorten the time between screenings by up to two days.

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