It’s been reported that Theranos is now under several federal investigations, this time for securities violations. It’s possible that the company could end up getting shut down. None of this is very surprising to people who have followed this story. The CEO, Elizabeth Holmes, was featured in some glowing mainstream press coverage last year but soon after questions started arising about the company. They claimed to have a method to do blood tests with a much smaller amount of blood than in traditional tests, but this has been called into question. It’s now widely thought that the claims were wildly overstated, if not outright false.
I would also mention that the CNBC clip shown is worse than useless. It seems as if they’re taking most of the company’s responses at face value, which is never a very good idea in this kind of scandal.