Theranos Investors Losses

About Theranos Investors Losses

Theranos investors lost over 700 million. Rupert Murdoch lost 125 million. The Walton family lost 150 million. Betsy DeVos lost 100 million. The Cox family lost 19 million. Larry Ellison lost an undisclosed sum. These losses were particularly embarrassing because the investors had not conducted adequate due diligence. Theranos had only two independent directors with no scientific expertise. Board members George Shultz and Henry Kissinger did not understand the technology. Walgreens invested 50 million in Theranos without independently verifying the technology. The investor losses demonstrated how FOMO and the prestige of other investors could substitute for due diligence. Most Theranos investors never recovered their money. The case changed how some investors approach due diligence on health technology companies.