What Happened To Theranos Board Of Directors?
The board of directors at Theranos, the once-vaunted startup that promised to revolutionize blood testing, has seen some major changes in recent months. In October, founder and CEO Elizabeth Holmes stepped down as CEO, and the company laid off about 40% of its staff. Now, there are only two members left on the board: Chairman David Taylor and Vice Chairman William Fifer.
The company has been under intense scrutiny since 2015, when allegations surfaced that its blood-testing technology was not as accurate as claimed. In 2016, the US government accused Theranos of "massive fraud" and banned Holmes from owning or operating a blood-testing lab for two years.
The board's shrinking membership is a reflection of the company's struggles. In the past year, several high-profile directors have departed, including former US secretaries of state George Shultz and Henry Kissinger, ex-US senator Bill Frist, and current Uber CEO Dara Khosrowshahi.
Theranos, once a Silicon Valley darling worth $9 billion, has imploded. The blood-testing startup is now worth less than $800 million and is facing multiple lawsuits. Its founder, Elizabeth Holmes, has been charged with fraud.
It's not clear what the future holds for Theranos, but it seems unlikely that the company will be able to rebound from its current situation. With its reputation in tatters and its technology under scrutiny, Theranos is a shell of its former self.
The company's downfall has been swift and brutal. Here's a look at what happened to Theranos' board of directors:
1. Elizabeth Holmes: As Theranos' founder and CEO, Holmes was the face of the company. She was ousted from her role as CEO in June 2018 and resigned from the board of directors in September 2018. She still owns a majority stake in the company.
2. Ramesh "Sunny" Balwani: Balwani was Theranos' president and COO. He was also Holmes' boyfriend. He left the company in 2016 and was indicted on federal wire fraud and conspiracy charges in 2018. He has pleaded not guilty.
3. David Boies: Boies was one of Theranos' high-profile lawyers and sits on the board of directors. He stepped down as chairman of the board in June 2018 amid the fraud scandal.
4. William Foege: Foege is a former director of the Centers for Disease Control and Prevention and an advisor to Theranos. He resigned from the board in 2016.
5. Henry Kissinger: Kissinger served on Theranos' board from 2014 to 2017. The former Secretary of State resigned amid questions about the company's practices.
The blood-testing startup Theranos has been through some tough times lately. The
Wall Street Journal has published a series of damaging articles about the
company, and its founder and CEO, Elizabeth Holmes, has been banned from the
blood-testing business. As a result, the company has been forced to lay off
nearly 40% of its workforce.
6. Riley Bechtel: Bechtel is the grandson of former Bechtel CEO Steve Bechtel Sr. He resigned from Theranos' board in 2016 amid questions about the company's practices.
Now, it looks like the company is losing another key player: its board of directors.
According to a new report from The New York Times, all but two of Theranos' board members have resigned in the past two weeks. The only members who remain are Holmes and her father, who is the company's chairman.
This is a significant shake-up for Theranos, which has already been through a lot of turmoil in recent months. The company is currently facing investigations from the SEC and the Justice Department, and it is also facing a number of lawsuits.
It is unclear why the board members have resigned, but it is likely that they were under pressure from investors to do so. Theranos has raised billions of dollars from investors, but it has not been able to live up to the hype. The company has promised to revolutionize the blood-testing industry, but it has not been able to deliver on that promise.
The resignations of the board members are just the latest sign that Theranos is in big trouble. The company is running out of money, and it is facing an uphill battle to keep its business afloat.
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