Theranos, founder Elizabeth Holmes and former president charged with ‘massive fraud’

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Theranos Inc., founder Elizabeth Holmes and former President Ramesh “Sunny” Balwani were charged Wednesday by the Securities and Exchange Commission with conducting “an elaborate, years-long fraud” that raised $700 million around their needles-less blood diagnostics company.

Theranos and Holmes have agreed to “resolve” the charges against them, the agency said in a statement, which includes Holmes giving up a majority of voting control and a reduced equity stake in the company. That latter part is significant since critics of the company said change couldn’t come to the company until Holmes gave up control.