Theranos, the blood analysis start-up, and Elizabeth Holmes, its chief executive and founder, have been charged with “massive fraud” by the US Securities and Exchange Commission.
The SEC said on Wednesday that Ms Holmes and the company’s former president Ramesh Balwani had raised more than $700m through “an elaborate, years-long fraud in which they exaggerated or made false statements about the company’s technology, business, and financial performance”.
Theranos and Ms Holmes have agreed to resolve the charges, according to the SEC, which said she had agreed to give up control of the business and pay a $500,000 penalty.
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