Theranos’ Ceo, Elizabeth Holmes, is being tried in court for her diagnostics machine. Her claim was that the machine could test numerous diseases. But it wasn’t so.
The case has four acquittals, four guilty verdicts, and three charges that the jury is divided on.
People who followed the company’s documentaries, sagas, books, etc. were completely stunned by the court verdict.
Who Is Actually Elizabeth Holmes?
She is a lady, who established a multi-billion dollar ($9bn in specific) company at the age of 19. She was an icon of American society, who was praised by Presidents of the United States, Joe Biden and Bill Clinton.
Things That Might Save Or Favour Holmes!
Cases like these have so much technical knowledge required. The jury had to go through the bundle of shreds of evidence, as well as technical papers.
Furthermore, Holmes just became a mother too. Some of the analysts believed that she might get the sympathetic vote of the people.
Also, Homes appeared before the jury. This was something unusual in these fraud cases. She said that the chief operating officer, Ramesh Balwani, was coercive in nature and sexually abused her.
But, “Balwani” denied the allegations categorically.
Another thing that might favor Holmes was her shares that she did not sell when the company’s share value was at a peak. She hold $5Bn shares when the company’s worth was $10bn.
Her lawyer tried to present the honesty in her intentions. That she stayed with the company and believed her intuitions.
What Was Not So Satisfying About Therano’s CEO?
She often commented about doing things differently. For example, when Pfizer and GSK were misreported as endorsing Theranos. They never endorsed Theranos.
The prosecution made this a very strong point in their defense.
Also, everyone reported the autocratic style of leadership that was being adopted by Holmes. In fact, people said, she controlled everything.
Which completely rejected her claims of not being aware of the operations of the company.
It is being reported, that she is dominating in nature. That’s why she appeared before the jury to make a good impression by dealing with everything herself.
What Would Be The Impact On Silicon Valley Of This?
There is a common slogan in Silicon Valley that says “fake it until you make it”. Holmes had a good plan, but the execution went wrong.
It is also reported that some high-profile tech companies’ female CEOs were convicted of fraud. whereas the number of male renowned tech companies’ CEOs made it true for themselves and others.
Another point to consider is that the people will realize the importance of telling the investors about the company’s plans. making the investors aware of the truth.
But, investors are keener to listen to good business ideas, they still believe in innovative ideas. They do not want to know much about the process of achieving those ideas. So, they should invest in the business ventures but carefully.
The news about Theranos’ CEO being found guilty of fraud, was also disturbing to the market.