Behind the 'Bad Blood' at Theranos
When Elizabeth Holmes dropped out of Stanford University at age 19 to found her company, Theranos, she promised to revolutionize blood testing and in doing so, transform the healthcare industry.
Her concept was appealing: By drawing a single drop of blood through a simple prick of a finger, her company's high-tech devices could run hundreds of tests at a fraction of the price of traditional blood tests. In the years that followed, Holmes’ lofty goal brought in millions of dollars of investments and a star-studded board of directors as well as landed her on the cover of magazines that portrayed her as a leader in Silicon Valley.
But according to reports and analyses by medical researchers, the technology didn't work. To hide that fact, Holmes and other company officials created a massive deception that included faking demonstrations, silencing employees who brought up concerns and lying about the company’s capabilities to investors, reporters and the public.
This week on Money Talking, Charlie Herman speaks with Pulitzer Prize-winning journalist John Carreyrou, who first reported the problems at Theranos in a 2015 Wall Street Journal exposé. He is also the author of the new book "Bad Blood: Secrets and Lies in a Silicon Valley Startup" that details the scandal at the company.
