Follow Us

Theranos' Founder Settles SEC Lawsuit, Forfeits Company Control

Theranos' founder Elizabeth Holmes was charged with "massive fraud."

Theranos' Founder Settles SEC Lawsuit, Forfeits Company Control

Getty Images

Caitlin Baldwin

By Caitlin Baldwin

Posted: 4:50 p.m. EDT Mar 14, 2018

The founder of the once-praised blood-testing company Theranos is now facing fraud charges.

CEO Elizabeth Holmes is forfeiting control of her startup and agreed to pay a $500,000 fine as part of a settlement tied to the charges against her.

The Securities and Exchange Commission said Holmes, as well as Theranos' former President Ramesh "Sunny" Balwani, deceived investors out of more than $700 million. The SEC accused the two of making it seem like the company had a market-ready way to do "a full-range of laboratory tests from a small sample of blood."

The SEC said Balwani hasn't agreed to a settlement and said it will continue seeking legal action against him.

Additional reporting from Newsy affiliate CNN.

Top Stories

A police officer talks with a homeless person, prior to a cleaning of the street

DC charity helps those who are homeless get housing

The Supreme Court is considering a case that could allow cities to make sleeping outside a crime. Advocates say this doesn't help the problem.

Soccer player holding her head after an injury visits a doctor's office.

New rapid blood test for concussions gets FDA approval

The device from Abbott Laboratories can reportedly detect if a patient has mild traumatic brain injury in just 15 minutes.

Apple pulls WhatsApp and Threads from App Store in China

The company said the apps were removed at the request of Chinese officials citing unspecified national security concerns.