Theranos founder Elizabeth Holmes arrives at the Robert F. Peckham Federal Building to attend a federal court hearing in San Jose, California, U.S. May 4, 2021. REUTERS/Kate Munsch
Misrepresentations about Nikola's financial prospects also spurred investor interest after it went public, prosecutors say. Milton talked of “billions and billions” of sales contracts that were binding when the company actually had 14,000 reservations, most of which could be canceled. He has pleaded not guilty.
Some will eventually deliver the financial goods. But Theranos is a cautionary tale. The former Silicon Valley darling was valued at $10 billion in 2015 on the promise of a machine that Holmes said could perform more than 240 clinical tests using a finger-prick of blood. Now she is accused of misleading investors. She has pleaded not guilty.