2. Theranos Inc.
Source: Chicago Business
People like Rupert Murdoch do not personally invest in a company unless they see some potential.
Theranos Inc. promised to revolutionize the healthcare industry and even managed to convince Rupert Murdoch and Cox Enterprises, Inc. to invest $100 million each toward the idea.
Use a more efficient way to test blood for diseases with just a few drops instead of an entire vial, and it seemed to be working. Theranos looked like it was going to be worth about $9 billion but then came the truth came out.
Their way of testing blood did not work, and the company gave inaccurate results to patients. They started using another competitor’s machines and techniques but continued to lie to the people who were paying for their defective services. Theranos was outed by the Wall Street Journal fraud, then investigated by the FDA and just as quickly as it had gone up, their empire came crashing down.
Elizabeth Holmes, the founder of the company, is supposedly banned from working in the blood-testing industry for the next couple of years, which apparently makes it difficult for her company to do work. The company is also under investigation by the San Francisco office of the U.S. Attorney and the Securities and Exchange Commission.
Private and public investors have put tens of millions of dollars into this company. They will probably be pulling their investments.