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Theranos raised $348.5M Private Equity on March 1, 2015. There is probably still cash on the balance sheet. Maybe by filing a suit they hope that the company wi
by sytse 10y ago
Theranos raised $348.5M Private Equity on March 1, 2015. There is probably still cash on the balance sheet. Maybe by filing a suit they hope that the company will be liquidated and to be at the front of the line when the proceeds get split.
- davidw 10y agoHonest question: how does this not trigger a "stampede for the exit" including lawsuits for everyone else who wants to get their money back?
- oneloop 10y agoProbably. I'd imagine that's why Theranos will insist part of the deal is that the exact terms will never be disclosed.
- FireBeyond 10y agoTheir other investors will be entitled to the balance sheets as is. They can't just say "and an undisclosed sum to [prior investor]" and redact their balance and liabilities. To the public, yes.
- oneloop 10y agoHah good point. So Theranos is literally fighting for their lives, because if one investor gets 25% of their money back, all the other investors will want the same.
- edoceo 10y agoOnce the suit is filed it also forces the CEO to behave differently, legally in terms of financial responsibility. Away from company&employees to investors. So I've read. I'm not a lawyer.
- capkutay 10y agoThat was about 18 months ago. I wouldn't be surprised if they were burning cash at a phenomenal rate (over $10m a month). They won't be able to do a big cash settlement without raising more money.