00:00:01
Thera nose began as a startup of almost
00:00:04
mythical proportions and goals in 2003
00:00:08
it's just an incredible morality tale a
00:00:11
woman once hailed as a Silicon Valley
00:00:13
visionary is facing federal fraud
00:00:15
charges tonight
00:00:17
Athena's founder Elizabeth Holmes has
00:00:19
now officially been indicted on federal
00:00:21
wire fraud charges the US Attorney's
00:00:23
Office accusing her of indeed imagine
00:00:25
building a company that everyone thought
00:00:27
would change the world but ended up
00:00:29
being one of the biggest frauds in
00:00:30
history Thera knows the company started
00:00:33
in 2003 by Stanford dropout Elizabeth
00:00:36
Holmes was just that they fooled
00:00:38
everyone receiving over six hundred
00:00:40
million dollars of funding in the
00:00:41
process what farah naaz promised was a
00:00:44
revolutionary blood analyzer that could
00:00:46
run hundreds of tests just from a finger
00:00:48
prick in the comfort of your own home
00:00:50
however this story isn't one of great
00:00:53
success or inspiration this story is
00:00:55
about deceit fraud manipulation and a
00:00:58
CEO who would stop at nothing to get her
00:01:00
goal this is the story of thoroughness a
00:01:03
company once worth nine billion dollars
00:01:05
and the story of how it all came
00:01:07
crashing down in one of the worst
00:01:08
disasters in Silicon Valley history what
00:01:11
exactly was Thoreau knows and how did it
00:01:13
go so horribly wrong
00:01:18
[Music]
00:01:22
Elizabeth Holmes was born to a
00:01:24
well-connected family with a rich
00:01:26
history from a young age Elizabeth knew
00:01:29
what she wanted in life to be a
00:01:30
billionaire at age 18 she went on a
00:01:34
Stanford run tour of China where she met
00:01:36
a man 20 years her senior called sunny
00:01:38
sunny immigrated from Pakistan and had
00:01:41
some success in the.com boom of 1999
00:01:43
pocketing 40 million dollars in the
00:01:45
process he had what she wanted money and
00:01:49
the status of a successful entrepreneur
00:01:51
sunny would later play a big role in
00:01:53
Elizabeth's company during another trip
00:01:56
to Asia
00:01:57
Elizabeth witnessed the SARS outbreak
00:01:58
from that point she came home determined
00:02:01
to change the world upon returning home
00:02:04
she didn't leave her room for five days
00:02:05
and slept two hours and night while
00:02:07
working on a patent idea the idea was to
00:02:11
create a wearable patch which could
00:02:12
continually test the blood of the wearer
00:02:14
and admit the right dose of medicine in
00:02:16
real time filtered determination she
00:02:19
dropped out of Stanford at age 19 and
00:02:21
started her own company the early days
00:02:23
were not glamorous the office of the new
00:02:26
company was in a part of town known for
00:02:27
shootings one day while in her car
00:02:30
Elizabeth was shot at with the bullet
00:02:31
just narrowly missing her despite this
00:02:34
she received a 1 million dollar seed
00:02:36
investment from her old neighbor who had
00:02:37
made some money investing in hotmail
00:02:39
early on Elizabeth wrote on the
00:02:41
reputation of her investors however when
00:02:44
it came to investors that specialized in
00:02:45
medicine she struggled to convince them
00:02:47
as a lack of knowledge started showing
00:02:48
it wasn't a surprise because she had
00:02:51
only spent a few semesters at university
00:02:53
so for most tech entrepreneurs this kind
00:02:56
of thing isn't a big issue for example
00:02:58
Mark Zuckerberg only needed to master
00:03:00
coding as a child and he could have
00:03:02
struck it big with little university
00:03:04
knowledge on the other hand medicine and
00:03:06
chemistry are fields that require
00:03:07
decades of knowledge and research to
00:03:10
find a breakthrough
00:03:11
regardless by the end of the year
00:03:13
Elizabeth had nearly 6 million dollars
00:03:15
in funding and her idea had changed now
00:03:18
the blood testing would be done by a
00:03:20
cartridge and reader system he is how it
00:03:22
was supposed to work patients would
00:03:25
prick their fingers storing blood in a
00:03:27
small cartridge pushing this cartridge
00:03:29
into a machine would run the tests the
00:03:31
fairness machines envisioned would
00:03:33
perform tests on the spot and beam
00:03:35
information via the internet to a lab
00:03:37
where personnel would interpret the
00:03:38
results and send a report back
00:03:41
traditionally the current industry
00:03:43
procedure was to draw a syringe full of
00:03:45
blood from a vein and physically send
00:03:47
the sample to a lab the old way use
00:03:50
large machines the size of several
00:03:52
business photo copiers and the results
00:03:54
will take a few days to get back from a
00:03:55
doctor
00:03:57
Thera nos would try to scout down the
00:03:59
components of these massive machines to
00:04:01
fit into a box the size of a personal
00:04:03
computer thoroughness was going to make
00:04:05
this process faster more comfortable and
00:04:07
completely bypass the need for a doctor
00:04:09
in this particular medical field there
00:04:12
are many components that are used to
00:04:13
test blood each of which performs a
00:04:15
different type of test for example one
00:04:17
test shoots a beam of light into the
00:04:19
sample blood and measures the light
00:04:21
reflected while other tests require
00:04:23
chemical reactions now this is the big
00:04:25
liar and the problem with fairness there
00:04:27
were several issues that made the
00:04:28
thoroughness machine is nearly
00:04:29
impossible firstly the components would
00:04:32
interfere with each other when placed in
00:04:34
close proximity due to a magnitude of
00:04:36
problems including heat light and
00:04:38
electrical activity next to have
00:04:41
sufficient volume of test samples from
00:04:43
only a pinprick on a finger the drops of
00:04:45
blood had to be diluted over diluted
00:04:47
samples gave inaccurate results and was
00:04:49
outside the detection capability of the
00:04:51
hardware so in short for the technology
00:04:54
to be possible fairness had to make
00:04:56
major breakthroughs on all fronts of
00:04:58
blood analysis they had to do all of
00:05:00
this while only reporting to Elizabeth
00:05:02
who didn't really have the knowledge
00:05:05
skipping forward to 2006 thier
00:05:08
anastomosis era nurse 1.0 Elizabeth
00:05:12
enlisted engineers to design a new
00:05:14
version called the Edison however no
00:05:17
fairness machine would ever be accurate
00:05:19
or capable of performing the full range
00:05:20
of tests that Elizabeth claimed
00:05:22
Elizabeth started to push the
00:05:24
engineering team manager to make the
00:05:26
Edison development around 24/7 when the
00:05:29
manager refused stating that the
00:05:30
engineers were overworked as it is
00:05:31
Elizabeth hired a parallel engineering
00:05:34
team and pitted the two teams against
00:05:36
each other in a survival of the fittest
00:05:37
race this kind of thing was actually a
00:05:39
tactic that Steve Jobs also used with
00:05:41
the original Mac in the iPhone but in
00:05:43
fairness his case the losing team would
00:05:45
be fired Elizabeth also started doing
00:05:48
some ethically questionable things such
00:05:50
as running a pilot test on cancer
00:05:52
patients with the company Pfizer she
00:05:54
knew the product didn't work yet but
00:05:56
insisted on running real tests on people
00:05:58
that had serious illnesses to highlight
00:06:01
how serious this was blood tests are
00:06:03
usually used to increase or decrease a
00:06:05
patient's dosage of medication or
00:06:07
diagnose conditions which may require
00:06:09
immediate action doctors his lab results
00:06:12
today 70% of their decisions on if the
00:06:14
results are false it could be fatal
00:06:16
of course the only reason the cancer
00:06:19
trials went ahead is that Elizabeth had
00:06:20
been outright lying to investors and
00:06:22
clients up about how well the product
00:06:24
actually worked the same year the
00:06:27
company's CFO discovered that Elizabeth
00:06:29
had been lying he told it a stop instead
00:06:32
of agreeing she fired him on the spot
00:06:34
after this Elizabeth never hired another
00:06:36
chief financial officer again leaving
00:06:38
the position vacant for a decade in 2007
00:06:44
there was no biggest Silicon Valley
00:06:46
stars and Steve Jobs Elizabeth has
00:06:49
started developing an obsession for jobs
00:06:51
an employee even found a newspaper cut
00:06:53
out on a desk where someone called her
00:06:55
the next Steve Jobs the obsession
00:06:57
bordered on insanity for example after
00:06:59
she found out that Steve scheduled
00:07:01
marketing meetings on Wednesdays she
00:07:03
would do the same with the same
00:07:04
marketing firm that Steve used she would
00:07:07
even recruit a few Apple employees one
00:07:09
of this included one of Steve Jobs as
00:07:11
oldest friends and the former senior
00:07:13
vice president of software at Apple av2
00:07:15
vania he even went out of retirement to
00:07:17
join the Fairness board the board of
00:07:19
fairness was made up of a star-studded
00:07:21
panel Don Lucas who mentored the founder
00:07:23
of Oracle was the chairman one day
00:07:26
Elizabeth once it's a restructure the
00:07:28
company shares which would give her
00:07:29
majority voting rights X Apple employee
00:07:32
AV who was on the board didn't think
00:07:34
that this was a good idea and paired
00:07:36
with the information that he'd received
00:07:37
from employees about the problems during
00:07:39
testing he felt like he had to do
00:07:41
something he spoke with Don Lucas the
00:07:44
chairman but this resulted in AV
00:07:46
resigning after he felt that his advice
00:07:48
fell on deaf ears Elizabeth had the
00:07:50
board wrapped around her finger she was
00:07:52
a master manipulator she spoke in a low
00:07:54
baritone voice in order to be taken more
00:07:56
seriously the question was as a
00:07:59
nineteen-year-old how do you go about
00:08:01
the process of convincing people that
00:08:02
you know what you're doing
00:08:03
it's about finding people who believe in
00:08:05
you because the worst possible thing in
00:08:07
the world is to have someone who doesn't
00:08:09
believe in you backing you because it's
00:08:11
not going to result in a good situation
00:08:13
on occasion she forgot to put on the
00:08:15
voice and was caught using a natural
00:08:17
voice before realizing and dropping
00:08:19
several tones
00:08:20
has it well if I use traditional words
00:08:23
to describe what we're doing it's hard
00:08:24
because people then associate it with
00:08:26
conventional processes for an alleged
00:08:28
drug shortly after the company moved to
00:08:32
a prime location in Silicon Valley a new
00:08:34
member of the sales team soon found out
00:08:36
that the financial projections were
00:08:38
based off pilot tests that weren't
00:08:39
honest the issue was brought to the
00:08:41
board who ran an emergency meeting and
00:08:43
decided to fire Elizabeth two hours
00:08:46
after they brought her in to tell her
00:08:47
the decision she had convinced them to
00:08:49
reverse it this incredible power of
00:08:51
persuasion is another reason why
00:08:53
fairness went so far with no real
00:08:55
working technology shortly after the
00:08:58
meeting Elizabeth fired those who raised
00:09:00
the alarm by this stage employees
00:09:03
leaving or being fired was common in
00:09:05
fact all employees who came from Apple
00:09:08
would leave in just a couple of years
00:09:10
around this time an old family friend
00:09:13
Richard foolís created a patent for a
00:09:15
method of transmitting information from
00:09:17
blood testing machines to doctors he did
00:09:20
this out of eventual spite for not being
00:09:22
asked advice when Elizabeth started the
00:09:24
company in his field of expertise he was
00:09:26
a doctor he sold his medical
00:09:28
demonstration video company for 50
00:09:30
million dollars in a few years time
00:09:32
Richard will go to court with fairness
00:09:34
over the patent he made which in private
00:09:36
he called the thoroughness killer
00:09:38
Richards patents wouldn't go on to kill
00:09:40
fairness but his actions would by 2009
00:09:47
Sonny the millionaire Pakistani
00:09:48
immigrant was now Elizabeth's boyfriend
00:09:50
and had joined the company as second in
00:09:52
charge sunny came from a software
00:09:54
background and had little knowledge of
00:09:56
the inner workings of a medical company
00:09:57
he claimed to have written 10 million
00:09:59
lines of code while at Microsoft but the
00:10:01
average developer at Microsoft only
00:10:03
writes a thousand lines a year he also
00:10:05
boasted of having extreme wealth and
00:10:07
only coming to work because he wanted to
00:10:09
he also had a habit of latching on to
00:10:11
buzzwords and using them despite little
00:10:13
knowledge of the topic engineers would
00:10:15
use terms out of context to see if we'd
00:10:17
continue to use them he did but Sonny
00:10:20
knew how to control people he was feared
00:10:22
within the company he constantly fired
00:10:24
people and let his tempers flare 2010
00:10:28
saw a whole lot of money pouring into
00:10:29
Silicon Valley Facebook Twitter and Eber
00:10:32
were all taking off
00:10:33
meanwhile Walgreens and Safeway had both
00:10:36
entered talks with farah naaz to partner
00:10:38
and create wellness centers these were
00:10:40
sections in their stores where patients
00:10:42
could get blood tests Theron Oz
00:10:44
presented Walgreens with a hundred and
00:10:45
ninety two different tests that could be
00:10:47
performed by their Edison machine
00:10:48
however only about half of them were
00:10:51
even theoretically possible the only
00:10:53
proof that the technology worked was a
00:10:55
review from John Hopkins Medical School
00:10:57
the document was only two pages long and
00:11:00
summarized a meeting where therenear
00:11:02
showed the university representatives
00:11:03
some data results no actual testing was
00:11:06
done on the machines themselves but
00:11:07
thoroughness was hot stuff and walgreens
00:11:10
had the fear of missing out and letting
00:11:11
their competitors land a partnership
00:11:13
Elizabeth also made such an impression
00:11:15
on the Walgreens and Safeway executives
00:11:17
that they trusted every word she said
00:11:19
combined Safeway and Walgreens gave
00:11:22
theranos a hundred and five million
00:11:24
dollars in investment in loans around
00:11:27
this time Elizabeth realized that the
00:11:29
Edison wasn't good enough so she
00:11:31
commissioned the mini lab the third
00:11:33
iteration of the blood testing product
00:11:34
meanwhile sunny intimidated employees
00:11:37
and watched CCTV footage of them to see
00:11:40
exactly how long people were working one
00:11:42
time he told an employee that he would
00:11:44
quote fix him after finding that he'd
00:11:47
only worked eight hours per day
00:11:49
Elizabeth backed up the decision stating
00:11:51
two employees that quote if anyone here
00:11:54
believes that you are not working on the
00:11:56
best thing humans have ever built or if
00:11:57
you're cynical then you should leave end
00:11:59
quote
00:12:00
basically anyone who agreed with
00:12:02
Elizabeth got promoted and those who
00:12:04
doubted got fired
00:12:07
by 2012 Safeway wasn't doing well they
00:12:11
had poured 350 million dollars into
00:12:13
renovations as store space across their
00:12:15
store locations in anticipation for the
00:12:17
thoroughness machines they were only met
00:12:19
with constant launch delays and excuses
00:12:21
when fairness did start accepting
00:12:24
Safeway employee samples they were
00:12:25
tested on existing commercial
00:12:27
third-party machines in a lab but
00:12:29
Safeway was lied to and given the
00:12:30
impression that all of these tests were
00:12:32
being performed on fairness Edison
00:12:33
machines they weren't even running most
00:12:37
of the tests on the fairness devices and
00:12:40
most the tests are being run on
00:12:41
third-party machines did miss Holmes
00:12:44
know at the time that fair nose could
00:12:48
not do all those tests yes
00:12:52
meanwhile fairness is lawsuit from
00:12:54
Richard the jealous family friend and
00:12:56
medical doctor was in full swing
00:12:58
he was serious about taking fairness
00:13:00
down he hired the same lawyer that
00:13:02
worked on the deposition case of Bill
00:13:04
Gates and the cost $1,000 now a pivotal
00:13:08
point for fairness is downfall came with
00:13:10
the subpoena of Ian Gibbons who had led
00:13:12
the chemistry team since 2005 in May of
00:13:15
2013
00:13:16
Ian was notified by fairness that in
00:13:18
just two days time he would be involved
00:13:20
in Richards trial he feared that
00:13:22
anything that he might say may put the
00:13:24
company in jeopardy and exposed the
00:13:26
liars Ian was miserable of fairness and
00:13:28
had just been demoted but feared that
00:13:30
leaving as a 67 year old would make it
00:13:32
impossible for him to get another job
00:13:34
the next morning Ian's wife Rochelle
00:13:37
found him in the bathroom having
00:13:38
overdosed on medication he died a week
00:13:41
later in hospital
00:13:42
Beckett theranos in a display of the
00:13:45
coldest heart Elizabeth didn't return
00:13:47
Rachelle's call about the death of her
00:13:49
husband elizabeth informed only a small
00:13:52
number of employees about Ian's passing
00:13:54
and loosely mentioned hosting a service
00:13:56
this was never carried out she seemed to
00:13:59
have just brushed off Ian's death pretty
00:14:00
casually after spending two million
00:14:03
dollars in the case Richard settled in a
00:14:05
massive blow to his pride this would
00:14:06
fuel the fire in Richard that would
00:14:08
eventually bring down fairness during
00:14:12
this period theranos was still carrying
00:14:14
out tests on third-party machines and
00:14:16
desperately trying to get results
00:14:17
this included stacking six mini labs on
00:14:19
top of each other to get
00:14:21
high throughput of tests the additional
00:14:22
heat generated actually hindered the
00:14:24
accuracy of tests further but their nose
00:14:26
didn't have time to work on their
00:14:27
technology they had already promised
00:14:29
their machines to the world and they had
00:14:31
a 140 million dollar contract with
00:14:33
walgreens which required them to launch
00:14:35
by February 2013 and there were four
00:14:37
months overdue the lies continued the
00:14:40
financial forecasts that Sonny gave to
00:14:42
investors were 10 times higher than the
00:14:44
internal forecasts of the company these
00:14:47
numbers were completely fabricated as
00:14:48
Theron operated without a CFO for the
00:14:51
last seven years ever since he was fired
00:14:55
ther enosis board as always were still
00:14:58
stacked with high-profile reputable
00:14:59
names so no one doubted the company this
00:15:02
included former US Secretary of State
00:15:04
Henry Kissinger former director of the
00:15:06
US Office of Management and Budget
00:15:08
George Shultz and future Secretary of
00:15:11
Defense
00:15:11
Jim Mad Dog matters had all joined the
00:15:14
board the company was very politically
00:15:16
connected by the stage
00:15:17
Elizabeth even through Hillary Clinton
00:15:20
the fundraiser for her 2016 campaign
00:15:22
money just kept pouring in partner fun
00:15:25
to put ninety four million dollars in
00:15:26
shares Rupert Murdoch chipped in 125
00:15:29
million the Walmart brothers put in 150
00:15:31
million the DeVos family put in another
00:15:34
hundred million
00:15:34
this gave theranos a nine billion dollar
00:15:37
valuation and Elizabeth was worth five
00:15:40
billion dollars one the shortcomings of
00:15:42
the technology were well known within
00:15:44
the company but employees were usually
00:15:46
too scared to do anything fearing
00:15:48
retaliation from sunny Elizabeth or the
00:15:50
company's lawyers employees were forced
00:15:53
to sign confidentiality agreements when
00:15:55
they started and again when they left
00:15:57
this stopped a lot of people from taking
00:15:59
action
00:16:01
Tylar shorts grant another board member
00:16:04
George Shultz was in a more privileged
00:16:06
position he noticed the issues of
00:16:08
thoroughness and after falling on Sonny
00:16:09
and Elizabeth's deaf ears he quit he
00:16:12
tried to talk to his grandfather he told
00:16:15
George about the Edison's inaccuracy and
00:16:17
the constant failing of quality control
00:16:18
tests he told him about how fairness had
00:16:21
doomed everyone by testing samples on
00:16:23
existing third-party commercial machines
00:16:25
not fairness his own Edison machines
00:16:27
incredibly Elizabeth had put such a
00:16:29
spell on George Shultz that he would
00:16:32
disregard everything his grandson Tyler
00:16:34
told him in mid-2014
00:16:38
fortune magazine released a front page
00:16:40
story titled this CEO is out for blood
00:16:43
this Rockets Elizabeth - celebrity
00:16:45
status and from this point she is
00:16:47
constantly making media appearances
00:16:48
Forbes USA Today NPR Fox Business CNBC
00:16:53
CNN and CBS News all took their turn to
00:16:57
cover the success story of the youngest
00:16:58
ever self-made female billionaire Barack
00:17:02
Obama made Elizabeth the US ambassador
00:17:04
for global entrepreneurship and she was
00:17:07
added to the board of fellows at Harvard
00:17:09
Medical School
00:17:10
Elizabeth enjoyed the fame she grew her
00:17:12
security team 220 her office was
00:17:15
redesigned to look like the president's
00:17:16
Oval Office complete wood bulletproof
00:17:18
glass
00:17:19
Elizabeth spoken a TED talk about her
00:17:21
idea to change the world
00:17:23
she said soon no one would have to say
00:17:25
goodbye too soon and went on to tell the
00:17:27
audience of a heartfelt story about how
00:17:29
her uncle had passed away from cancer
00:17:31
but of course the TED talk was merely an
00:17:33
act in reality she wasn't even close to
00:17:36
her uncle and had just exploited his
00:17:38
death for her narrative meanwhile cracks
00:17:41
were beginning to crumble the Empire
00:17:43
Richard by this stage had created a gang
00:17:45
of fairness skeptics including Ian's
00:17:47
Widow
00:17:48
Rochelle they collected information and
00:17:51
then took it to John Kerry we at The
00:17:52
Wall Street Journal as John began
00:17:55
investigating countless sources and
00:17:57
former employees came out of the
00:17:58
woodwork
00:17:59
they anonymously provided information
00:18:01
about the story Thera nose attacked
00:18:03
everyone who was talking they used their
00:18:05
pile of money and they threatened to sue
00:18:07
everyone else he spoke to the Wall
00:18:09
Street Journal they even hired private
00:18:11
investigators to stalk anyone they
00:18:13
suspected
00:18:14
several letters were sent to the Wall
00:18:15
Street Journal to try and kill the story
00:18:17
threatening defamation lawsuits Rupert
00:18:19
Murdoch the owner of The Wall Street
00:18:21
Journal and investor and thoroughness
00:18:22
was asked by Elizabeth to personally
00:18:24
kill the story he refused stating that
00:18:27
he had confidence in the editors to
00:18:29
handle the truth whatever it may be the
00:18:32
reaction from thoroughness was intense
00:18:34
and the story wasn't even out yet
00:18:37
business that usual continued at
00:18:39
fairness Elizabeth was making Whitehouse
00:18:41
appearances often then but under the
00:18:43
veneer the machines could still only do
00:18:45
a small number of tests and where
00:18:47
inaccurate would even just those
00:18:48
thoroughness
00:18:49
continue to demonstrate the minilab VIP
00:18:52
guests they pricked their finger then
00:18:54
waited until they left and then went on
00:18:56
to use existing commercial third-party
00:18:58
lab machines to return the results Vice
00:19:00
President Joe Biden even paid Theron
00:19:03
also visit he was shown a fake lab that
00:19:05
was set up just for the visit he was
00:19:06
impressed saying that there was the lab
00:19:08
of the future and praised fairness the
00:19:11
dark truth about fairness was finally
00:19:13
unveiled in The Wall Street Journal
00:19:14
article of October 15th 2015 it was a
00:19:18
bombshell all the major news articles
00:19:20
picked it up people began questioning
00:19:22
thoroughness and its secrecy Elizabeth
00:19:25
took it olena stride not shying away
00:19:27
from the questions but instead outright
00:19:30
lying to the public it appeared that she
00:19:32
thought everyone would just believe her
00:19:34
again but this time it was different
00:19:37
now people were asking serious questions
00:19:39
[Music]
00:19:41
and just this morning The Wall Street
00:19:43
Journal ran a pretty scathing article
00:19:44
about the company legend if the
00:19:46
company's proprietary testing devices
00:19:47
may be inaccurate and basically accusing
00:19:50
thoroughness of deceptive practices to
00:19:52
Elizabeth Holmes the founder and CEO of
00:19:54
Thoreau knows give her a chance to
00:19:56
answer the charges raised in the article
00:19:58
this home was welcomed back to me of
00:19:59
money it's great to be here thank you
00:20:01
what do you think's going on here this
00:20:03
is what happens when you work to change
00:20:05
things and first they think you're crazy
00:20:08
then they fight you and then all of a
00:20:10
sudden you change the world and I have
00:20:13
to say I
00:20:14
I personally was shocked to see that the
00:20:17
journal would publish something like
00:20:18
this just as the story had been
00:20:21
published the FDA made a surprise
00:20:23
inspection of thier nose in further
00:20:25
investigations it was found that the
00:20:27
fairness edison blood testing machine
00:20:29
only performed 12 out of 250 tests and
00:20:32
even those produced wildly erratic
00:20:34
results now Thera nose was in full
00:20:38
damage control Elizabeth broke up with
00:20:40
Sonny and fired him a criminal
00:20:42
investigation was underway and a probe
00:20:44
by the Securities and Exchange
00:20:45
Commission was also proceeding the
00:20:47
investors began suing theranos one by
00:20:49
one partner fund sued for a hundred
00:20:51
million Walgreens for a hundred and
00:20:53
forty million Elizabeth had to close the
00:20:55
trial out and had to pay four point five
00:20:57
million dollars to Arizona State where
00:20:59
most patients had received testing
00:21:01
thoroughness had voided nearly a million
00:21:03
lab results ten patients would sue
00:21:06
fairness for medical battery but
00:21:07
shockingly amongst all of this Elizabeth
00:21:10
never apologized it seemed to her mealy
00:21:13
mistake along the way which could be
00:21:15
fixed so Elizabeth and Sonny both knew
00:21:21
what they were doing
00:21:22
lying to investors their clients the
00:21:24
regulator's patients and even their own
00:21:27
board no one outside can be blamed for
00:21:30
not realizing the fraud ahead of time
00:21:31
even the board made up of seasoned
00:21:34
professionals was masterfully
00:21:35
manipulated into giving Elizabeth ninety
00:21:37
nine point seven percent of the voting
00:21:39
rights
00:21:39
she seemed by all accounts a sociopath
00:21:42
willing to stop at nothing to make her
00:21:44
company a success not caring who or what
00:21:47
got in her way
00:21:48
and who knows how far the lie could have
00:21:50
gone she continued with all smiles and
00:21:53
even after the truth came out
00:21:55
Elizabeth's actions could be a microcosm
00:21:58
a case for a modern problem in society
00:22:00
whether need to be successful or at
00:22:02
least appear successful outweighs
00:22:04
everything else there's possibly another
00:22:07
fault at play here a Fault in the human
00:22:09
condition it's the illusionary effect
00:22:11
where if you repeat a lie enough times
00:22:12
people start to believe it especially if
00:22:15
you have credible names surrounding the
00:22:16
product the SEC settled with Elizabeth
00:22:19
Holmes in March of 2018
00:22:21
she lost voting control had to give away
00:22:23
her portion of the stock and was banned
00:22:25
from being an officer a director of any
00:22:26
public company for ten years sunny still
00:22:30
hasn't reached a settlement with the SEC
00:22:31
both Sonny and Elizabeth have been
00:22:33
indicted on criminal charges in an
00:22:35
ongoing lawsuit at the time of this
00:22:37
video
00:22:37
they are both pleaded not guilty and
00:22:39
each faced 20 years in prison
00:22:41
Thera nose was dissolved in September
00:22:44
2018 so one question remains if fairness
00:22:51
was to keep going would they have made
00:22:53
it with their blood testing machinery
00:22:55
ever have worked well actually it's a
00:22:57
harder question to answer than one might
00:22:59
think when they were running out of
00:23:00
money they tested on real patients as a
00:23:03
proof of concept to gain more funding
00:23:05
which is of course what brought them
00:23:06
down in the first place but say they did
00:23:08
get funding without testing on patients
00:23:10
the unveiled mini lab was only
00:23:12
incrementally better than the Edison
00:23:14
machine
00:23:14
even though fairness had hundreds of
00:23:16
millions of dollars at their disposal so
00:23:18
if that being said is pretty unlikely
00:23:20
that any company would have succeeded in
00:23:22
this so that wraps up our look at
00:23:25
fairness so I know that would have lost
00:23:27
some of the faith and humanity that you
00:23:28
had but if you want to see some real
00:23:30
actual breakthroughs and research in the
00:23:32
medical field the things such as
00:23:34
real-life nanobots being used in cancer
00:23:36
with with success in mice trials or stem
00:23:38
cells being injected directly into the
00:23:40
brains of stroke victims allowing for
00:23:42
recovery has never seen before and even
00:23:44
enabling a wheelchair-bound man to walk
00:23:46
again this is the kind of cool stuff
00:23:48
that gets lost in the sea of media day
00:23:49
to day but you can find those videos
00:23:51
right here on ColdFusion I'll leave a
00:23:53
link in the description below anyway
00:23:56
thanks for watching this has been - go
00:23:57
go you've been watching cold fusion and
00:23:59
I'll see you again soon for the next
00:24:01
video
00:24:01
Shia's guys have a good one
00:24:04
[Music]
00:24:29
you
00:24:29
[Music]
