Controversial CEO, Elizabeth Holmes, and her crazy company Theranos–stacked with geriatric old men on the board–has enjoyed enormous private sector success–as the VC community ate her bowl of dog food up and gave it 3 Michelin stars. The valuation of Theranos was upwards of $10 billion, before the Wall Street journal, and others, went to war with them.
Their board. Note Henry Kissinger is no longer on the list.
Apparently, the Center for Medicaid and Medicare (CMS) thinks they’re full of shit too and has issued them a letter–warning them to comply else face the wrath of government.
Theranos’ response:
“This survey of our Newark, CA lab began months ago and does not reflect the current state of the lab. As the survey took place we were simultaneously conducting a comprehensive review of our laboratory’s systems, processes and procedures to ensure that we have best-in-class quality systems,” the company said.
“We value engagement with our regulators, and are committed to ensuring that all our labs operate at the highest standards. We are still reviewing the report, but we addressed many of the observations during the survey and are actively continuing to take corrective action. A full plan of correction will be submitted to CMS within days.”
This ends badly for investors of Theranos.
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