Theranos : The Bleeding Edge
In 2015, Theranos CEO Elisabeth Holmes was on Forbes magazine’s list of the world’s wealthiest businesswomen under 30, at $4.5 billion. Less than one year later, her net worth was an estimated… $0.
Ms Holmes claimed that Theranos had developed technology that could screen for hundreds of diseases in a single drop of blood, thereby saving millions if lives. The company raked in over $700 million in investments, and its CEO was widely touted as the next Steve Jobs.
The Failure :
Then, the highly respected Wall Street Journal revealed that Theranos only conducted 15 of the 240 screening tests on its own equipment. The others were conducted using competitors’ equipment.
Last November, Walgreens drugstores, a partner from the outset, filed a $140-million lawsuit for fraudulent practices. Theranos had failed to respect its promise because the product simply didn’t work.
The Moral :
Today, we expect brands to be honest and transparent and to keep their promises. It’s intolerable to learn that brands claiming “perfection” and to be “the ultimate” have been lying to us all along. Ms Holmes paid the price where it counts the most: by losing her fortune and her credibility.
Image Source : Jenny Hueston