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Theranos’ Holmes Settles Civil Fraud Charges

The Theranos saga may be finally reaching the endgame. Founder and CEO Elizabeth Holmes reached a settlement with the Securities and Exchange Commission on civil fraud charges. As part of the deal, Ms. Holmes surrendered voting control of her blood-testing company, paid a $500,000 penalty and agreed to a 10-year ban from being an officer or director of a public company. The settlement follows a two-year long investigation by the SEC, prompted by revelations uncovered by the Wall Street Journal. Theranos was once a startup star that at one time was valued at $9 billion. It raised $1.4 billion from investors including DFJ’s Tim Draper, who two weeks ago told me in an interview Ms. Holmes was one of Silicon Valley’s biggest innovators.

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