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This will wipe her out, and likely kill her career. Remember, this is just the SEC. The pain they inflict is commensurate to investor pain. The government sti

This will wipe her out, and likely kill her career. Remember, this is just the SEC. The pain they inflict is commensurate to investor pain. The government still should go after them for endangering people’s lives. There should be long jail terms for that.

Kalium 9y ago
> The government still should go after them for endangering people’s lives. There should be long jail terms for that. But the SEC won't, because that's not what they do. And this is, I think, as it should be.
- mathattack 9y ago
  Exactly - separate group.
spaceflunky 9y ago
>This will wipe her out Will it though? Surely Holmes still has a few million stashed away somewhere that she can live comfortably off of? This settlement isn't going to leave her destitute. Either that or I'm sure she set up some clever offshore accounting structure that has $10M stashed in the cook islands or some shit. As soon as you get some cash, I think "rich person 101" is you set up some complicated structure to hide rainy day money for this very reason. I would venture to guess she took home at least $50MM in all those rounds of investment (maybe more? i have no idea how that works.), I doubt she blew it all or was stupid enough to leave it in plain sight.
- ericd 9y ago
  Did she take money off the table? Not everyone does/can, even when they raise a lot.
  - spaceflunky 9y ago
    I often wonder about this. I know founders that have instantly taken $100k off the table on a $1M angel investment. but such is silicon valley life i suppose?
    - mathattack 9y ago
      Per other posts in the thread it looks like she didn’t beyond a 6 figure salary.
- mathattack 9y ago
  I should be more precise... This wipes out her Theranos stock. Who knows what she paid herself. Her VC was a family friend, so I suspect she has family money, and may stand to inherit Palo Alto real estate. The big difference is for all the time invested, her current stock is worth zero.
  - make3 9y ago
    She lied, and doing so stole people's money, and maybe hurt some people's health. Who cares she got nothing from what she did. That's how it usually works for startups anyways, you risk having wasted your time. That's why we need making it worse, a stronger deterrent then her company dying, otherwise lying can be seen as acceptable to prevent a compagnie's death, as the only negative side effect is the company dying
    - mathattack 9y ago
      She’s lost every chance to get a good exec position. The SEC doesn’t send people to jail, that’s out of their jurisdiction. The government will be the ones to do that.
- harryh 9y ago
  Matt Levine at Bloomberg says she never sold any shares and was paid a fairly modest salary for her role. https://www.bloomberg.com/view/articles/2018-03-14/theranos-misled-investors-and-consumers-who-used-its-blood-test https://www.bloomberg.com/view/articles/2018-03-14/theranos-...
  - nerfhammer 9y ago
    It's right there in the civil complaint. Dunno if there were any other forms of compensation, but at first glance it does sound like she lost everything: > Holmes was paid a salary of approximately $200,000 to $390,000 per year between 2013 and 2015. During the same period, she also exercised approximately 53.7 million stock options and received super-majority voting, Class B common shares, which granted her almost complete voting control over the company. Holmes has never sold any of her Theranos stock. https://www.sec.gov/litigation/complaints/2018/comp-pr2018-41-theranos-holmes.pdf https://www.sec.gov/litigation/complaints/2018/comp-pr2018-4...

Kalium 9y ago

> The government still should go after them for endangering people’s lives. There should be long jail terms for that. But the SEC won't, because that's not what they do. And this is, I think, as it should be.

mathattack 9y ago
Exactly - separate group.

spaceflunky 9y ago

>This will wipe her out Will it though? Surely Holmes still has a few million stashed away somewhere that she can live comfortably off of? This settlement isn't going to leave her destitute. Either that or I'm sure she set up some clever offshore accounting structure that has $10M stashed in the cook islands or some shit. As soon as you get some cash, I think "rich person 101" is you set up some complicated structure to hide rainy day money for this very reason. I would venture to guess she took home at least $50MM in all those rounds of investment (maybe more? i have no idea how that works.), I doubt she blew it all or was stupid enough to leave it in plain sight.

ericd 9y ago
Did she take money off the table? Not everyone does/can, even when they raise a lot.
- spaceflunky 9y ago
  I often wonder about this. I know founders that have instantly taken $100k off the table on a $1M angel investment. but such is silicon valley life i suppose?
  - mathattack 9y ago
    Per other posts in the thread it looks like she didn’t beyond a 6 figure salary.
mathattack 9y ago
I should be more precise... This wipes out her Theranos stock. Who knows what she paid herself. Her VC was a family friend, so I suspect she has family money, and may stand to inherit Palo Alto real estate. The big difference is for all the time invested, her current stock is worth zero.
- make3 9y ago
  She lied, and doing so stole people's money, and maybe hurt some people's health. Who cares she got nothing from what she did. That's how it usually works for startups anyways, you risk having wasted your time. That's why we need making it worse, a stronger deterrent then her company dying, otherwise lying can be seen as acceptable to prevent a compagnie's death, as the only negative side effect is the company dying
  - mathattack 9y ago
    She’s lost every chance to get a good exec position. The SEC doesn’t send people to jail, that’s out of their jurisdiction. The government will be the ones to do that.
harryh 9y ago
Matt Levine at Bloomberg says she never sold any shares and was paid a fairly modest salary for her role. https://www.bloomberg.com/view/articles/2018-03-14/theranos-misled-investors-and-consumers-who-used-its-blood-test https://www.bloomberg.com/view/articles/2018-03-14/theranos-...
- nerfhammer 9y ago
  It's right there in the civil complaint. Dunno if there were any other forms of compensation, but at first glance it does sound like she lost everything: > Holmes was paid a salary of approximately $200,000 to $390,000 per year between 2013 and 2015. During the same period, she also exercised approximately 53.7 million stock options and received super-majority voting, Class B common shares, which granted her almost complete voting control over the company. Holmes has never sold any of her Theranos stock. https://www.sec.gov/litigation/complaints/2018/comp-pr2018-41-theranos-holmes.pdf https://www.sec.gov/litigation/complaints/2018/comp-pr2018-4...