She dropped out of Stanford University at the age of 19 to found her own company. Within 11 years, she was one of Silicon Valley’s darlings, appearing on the cover of Fortune magazine. She was once worth approximately $4.5 billion and was lauded as one of the richest self-made women in the world. Wealthy families and prominent investors eagerly invested in her company. She was honored by former presidents, government officials, and industry leaders.
She is Elizabeth Holmes, the founder of the Palo Alto company Theranos.
The company touted a disruptive and innovative medical technology. Instead of the usual venipuncture needed to obtain tubes of blood for laboratory testing, only a few drops of blood from a finger stick would be required. Theranos claimed that its proprietary blood analyzer could perform hundreds of laboratory tests using only a fraction of the usual amount of blood.
There were no adequate published scientific studies to verify many of these claims. Nevertheless, numerous investors were willing to back the company. Walgreens agreed with Theranos and began offering its tests in more than 40 locations.
The cracks began to appear in October 2015 after an investigation by The Wall Street Journal questioned the claims and accuracy of the company’s blood-testing technology. The article revealed that Theranos was performing many of its tests on conventional laboratory instruments rather than its own analyzer.
Other laboratory professionals and company insiders had raised similar concerns. Pathologists, clinical chemists, and laboratory scientists understood that claims of this magnitude required independent validation. Laboratory testing must be accurate, reproducible, and subjected to strict quality-control standards. A convincing presentation cannot substitute for scientific evidence when the health of patients is at stake.
As calls for government scrutiny increased, federal inspectors found numerous deficiencies in the Theranos laboratory. Regulators eventually revoked the laboratory’s certification and prohibited Holmes from owning or operating a laboratory for two years. Walgreens terminated its relationship with Theranos, lawsuits followed, and the company dissolved in 2018.
The emperor truly had no clothes.
Unfortunately, this was not merely a story about wealthy investors losing their money. Thousands of patients had received Theranos laboratory results. Some results were inaccurate or unreliable, causing patients needless concern, repeated testing, confusion, and the possibility of inappropriate medical decisions.
In 2018, Holmes settled civil fraud charges brought by the Securities and Exchange Commission. She paid a $500,000 penalty, surrendered control of Theranos, returned millions of shares, and was prohibited from serving as an officer or director of a public company for 10 years.
The criminal case continued. In January 2022, Holmes was convicted of conspiracy and three counts of wire fraud involving Theranos investors. She was sentenced to 135 months in federal prison and began serving her sentence in May 2023. She and former Theranos executive Ramesh “Sunny” Balwani were also ordered to pay $452 million in restitution to the victims of their fraud.
Her collapse was as stupendous as her meteoric rise.
A false balance is an abomination to the Lord, but a just weight is his delight.
Proverbs 11:1 (ESV)
This proverb and its underlying principle are repeated many times in the Bible. (Leviticus 19:35–36; Deuteronomy 25:13–16; Ezekiel 45:9–10; Amos 8:4–6; Hosea 12:7–8; Micah 6:10–14; Proverbs 16:11; Proverbs 20:10; and Proverbs 20:23.)
If God, through the Holy Spirit, repeatedly instructed His prophets to record this principle, we should pay attention. While the verse may be taken at face value, its deeper message concerns honesty in business and in life. In biblical times, a dishonest merchant might use inaccurate weights to deceive a customer. Theranos used unreliable measurements while convincing patients and investors that those measurements could be trusted.
The lessons of Theranos will be debated in business and medical schools for many years. How could so many intelligent and accomplished people have been fooled? Why did prominent investors place so much money into a medical technology that had not been adequately validated? Why were the people asking difficult scientific questions ignored?
There were failures in judgment, corporate governance, laboratory oversight, and professional responsibility. However, the deeper problem was the same problem that has existed throughout human history: our sinful nature.
It would be easy to read this story and condemn Elizabeth Holmes. Her deception was enormous, public, and destructive. Our own dishonesty may appear much smaller. We may exaggerate our accomplishments, conceal our failures, or say what others want to hear because we are afraid of losing their approval. We may begin by bending the truth only slightly, but a false balance remains a false balance.
God demands the same high ethical standards from us in our personal lives, our professions, and our businesses. He sees not only what we do but also the motives behind our actions. God must continually remind us that we will continue to fail and live by deceptive moral principles until we acknowledge that our sins have separated us from the loving God who created us.
What can we do?
We need to confess and repent of our sins and accept Jesus Christ as our Lord and Savior. Only then can the destructive cycle of sin begin to be reversed as the Holy Spirit transforms us into the image of Jesus Christ.
Love and trust the Lord; seek His will in your life.
#faith #trustinggod #christianity #jesuschrist #bible #seekinggodswill #truth #sanctification #godisincontrol #godhearsourprayers #salvation #providenceofGod #theranos #Proverbs11:1 #ElizabethHolmes
