Putting Fraud before Family

Case Study 7.3 “Putting Fraud Before Family”
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Please read Case Study 7.3 “Putting Fraud Before Family” and answer Questions 1, 2, 3, 4, and 6 at the end of the case. The Case study is start from Page 325 and end on Page 328The assignment is to complete an analysis of one or more of the case studies posed at the end of the chapter readings for that Unit. These assignments are meant for the student to apply course materials from that Unit’s readings and asynchronous lectures in support of answering the questions posed at the end of the case.
1. Were there signs that Theranos was engaged in fraud before the scandal broke?
Tyler Shultz, who was employed at Theranos, noted that the Edison blood-testing technology gave different results from the same blood sample. At the same time, the company rejected some findings, and the results were untested (Johnson, 2019). Tyler recognized there were unethical practices and failure to follow standard procedures at the company, but lies and secrecy made it difficult to make changes. Shultz further raised concerns that the machines and technology used for blood testing had failed quality controls, but his pleas were ignored, and instead, when he resigned, he was served with letters for leaking trade secrets. Additionally, Elizabeth Holmes, founder and former CEO of Theranos, gave vague on her how supposed technology innovation worked. In reality, the Edison test and technology did not work at all to detect any diseases from a drop of blood
2. What shadows did CEO Holmes cast?
Holmes cast shadows on healthcare and female-led startups at a time when there was growing interest among angle and venture investors to fund innovative startups beyond those in computer technology. The failure of the biotech company showed Silicon Valley investors had failed to undertake due diligence and the Silicon Valley culture rewards high risk. Holmes set back women founders in Silicon Valley, and for a time, there was enthusiasm for disruptive healthcare startups. There is no room for error in medical scie...