Theranos' Founder Settles SEC Lawsuit, Forfeits Company Control

Theranos' founder Elizabeth Holmes was charged with "massive fraud."
Posted at 5:11 PM, 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.