Federal prosecutors are investigating Theranos for allegedly over-hyping its blood diagnostic technology to investors.
That’s pretty ironic, since the people most guilty of grandstanding may be the feds themselves.
Theranos, a high-profile Palo Alto startup founded by superstar entrepreneur Elizabeth Holmes, is no doubt a hot mess. The company, which investors valued at $9 billion, has run afoul of regulators for not properly managing one of its laboratories. Moreover, critics say Theranos’ technology, designed to diagnose a host of diseases from a small amount of blood, simply does not work. (A Theranos spokeswoman declined to comment but did confirm the criminal probe.)
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