Public domain (U.S. government work) ↗
CMS Sanctions Letter to Theranos
- Year
- 2016
- Creator
- Karen Fuller, Centers for Medicare & Medicaid Services
- Company
- Centers for Medicare & Medicaid Services; Theranos
- Location
- Theranos laboratory, Newark, California
Description
This federal letter of July 7, 2016, told Theranos that regulators would revoke the certificate of its lab in Newark, California. It also said that founder Elizabeth Holmes could not own or operate a lab for at least two years.
Importance
Theranos said that its technology gave accurate blood test results from a prick of a finger, and investors valued it at approximately $9 billion. After reports in The Wall Street Journal in 2015, federal inspectors found serious problems in its Newark lab. Like the Juicero press of the same year, Theranos raised money from investors before news reports showed problems with its product.
Interesting fact
In June 2016, a month before this letter, Forbes cut its estimate of the fortune of Holmes from $4.5 billion to zero.
Sources
- File:R Theranos Inc CMS 07-07-2016 Letter.pdf (letter as published by The Wall Street Journal) ↗Wikimedia Commons · 2016-07-07
- CMS letter to Theranos, July 7, 2016 (PDF) ↗The Wall Street Journal · 2016-07-07
- Elizabeth Holmes, Theranos CEO, banned from operating medical laboratory for two years ↗PBS NewsHour · 2016-07-08
- From $4.5 Billion To Nothing: Forbes Revises Estimated Net Worth Of Theranos Founder Elizabeth Holmes ↗Forbes (Matthew Herper) · 2016-06-01