Even Narcissus ultimately saw a fool in that pool. Played and tarred to a greater or lesser degree were: the only major SV VC lured in, Draper Fisher Jurvetson, and off-SV investors like mutual funds and private equity have lost it all; Fortune, Forbes, CNN plus much of the tech and financial press; and respected people lured to the board like Marine Gen. James Mattis, who had initiated the pilot program in DOD, Henry Kissinger and former Senator Bill Frist MD. Then the alphabet agencies marched in after the author: FDA, CMS, SEC and DOJ.
Oh yes, that Zika test announced in early August? Withdrawn at end of August. Ms Holmes is appealing her two year lab ban. But she still has absolute control of what’s left of the business. Business Insider
Finally, the lede in many articles is the suicide of British chief scientist Ian Gibbons and Ms Holmes reaction. Already ill with cancer, he came on board in 2005 and soon realized that the reality of the science didn’t match the messaging. The tests were off and remained off. By 2013, he knew Ms Holmes was going to fire him over control issues and having to testify truthfully in a court case (ironically instigated by Theranos). His suicide, Ms Holmes’ chilly reaction to it, and the company’s threatened legal action against his widow, Rochelle Gibbons, tells a great deal about Ms Holmes.
Ultimately the only heroes here are the Wall Street Journal‘s John Carreyrou and his team, who deserve a Pulitzer Prize for their continuing investigative work. They’re conducting a refresher course to Silicon Valley, those of us in the Writing Game and the industry. Dig Deeper, indeed.