Speed Reads

how the mighty have fallen

Theranos CEO Elizabeth Holmes to resign after wire fraud indictment

Theranos founder and CEO Elizabeth Holmes announced Friday she would step down from her role at the blood testing start-up after the Justice Department said she has been indicted on wire fraud charges.

Along with former Theranos president Ramesh Balwani, Holmes stands accused of conspiring to mislead "doctors and patients about the reliability of medical tests that endangered health and lives," said John Bennett, the FBI agent in charge of the case. Both pleaded not guilty.

Theranos purported to offer quicker and more accurate blood tests using a small fraction of the blood used by regular labs. Holmes was also subject to a separate Securities and Exchange Commission investigation, and she paid a $500,000 fine to settle that case.