Theranos
Healthcare / Diagnostics · Collapsed Sep 2018
Case Summary
Theranos raised $700M claiming revolutionary blood-testing technology. CMS sanctions, whistleblower departures, and investigative journalism exposed systematic fraud. The company dissolved in September 2018.
Peak Signal Scores
News & Events
10Company Filings
9Sentiment
8Workforce
7Funding
6Market Position
3Signal Timeline
Wall Street Journal begins investigative reporting on Theranos technology claims.
CMS inspection finds serious deficiencies at Newark lab.
CMS issues sanctions. Lab operations suspended.
Key scientific staff departing. Replacements from non-diagnostic backgrounds.
Former employees go public with concerns about data fabrication.
SEC charges Holmes with fraud.
Theranos formally dissolves.
What ERR Would Have Shown
By 2016, Theranos’s regulatory signals were flashing. CMS had issued sanctions against its lab. Key scientific staff had departed, with replacements coming from non-diagnostic backgrounds. The Wall Street Journal’s investigative reporting added a public sentiment dimension. ERR would have detected the convergence of regulatory action, workforce expertise drain, and adverse media 36 months before the SEC charges — ample time for any LP or lender to exit.
Current Portfolio Matches
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