No Result
View All Result
SUBSCRIBE | NO FEES, NO PAYWALLS
MANAGE MY SUBSCRIPTION
NEWSLETTER
Corporate Compliance Insights
  • Home
  • About
    • About CCI
    • CCI Magazine
    • Writing for CCI
    • Career Connection
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Library
    • Download Whitepapers & Reports
    • Download eBooks
    • New: Living Your Best Compliance Life by Mary Shirley
    • New: Ethics and Compliance for Humans by Adam Balfour
    • 2021: Raise Your Game, Not Your Voice by Lentini-Walker & Tschida
    • CCI Press & Compliance Bookshelf
  • Podcasts
    • Great Women in Compliance
    • Unless: The Podcast (Hemma Lomax)
  • Research
  • Webinars
  • Events
  • Subscribe
Jump to a Section
  • At the Office
    • Ethics
    • HR Compliance
    • Leadership & Career
    • Well-Being at Work
  • Compliance & Risk
    • Compliance
    • FCPA
    • Fraud
    • Risk
  • Finserv & Audit
    • Financial Services
    • Internal Audit
  • Governance
    • ESG
    • Getting Governance Right
  • Infosec
    • Cybersecurity
    • Data Privacy
  • Opinion
    • Adam Balfour
    • Jim DeLoach
    • Mary Shirley
    • Yan Tougas
No Result
View All Result
Corporate Compliance Insights
Home Featured

Somewhere Over Theranos – There’s No Place Like Holmes

by Sandra Erez
July 9, 2019
in Featured, Fraud, Opinion
elizabeth holmes as the wicked witch of the west

Illustration © Sam Kerner 2019


Illusion or reality? Stakeholders and executives can only tell if they follow the yellow brick road of due diligence and encourage rainbow diversity throughout their organization, including the board. Join Sandy Erez in pulling back the curtain on the Theranos debacle – before you set your sights on your next corporate wizard.

Everybody loves a medical breakthrough. Our hearts race (especially if we need a cure for arrhythmia) as we imagine the best minds in health care technology clearing brambles on the winding road to better health. Perhaps, this is the long-awaited miracle that will cure Auntie Em’s and Uncle Henry’s creaky ailments or curb the bizarre behavior of poor, demented Miss Gulch. The universal quest for health is red hot. So, it’s a no-brainer and no wonder that investors would put their faith – and millions of dollars – into backing a medical technology “drama” that was sure to appeal to a wide-eyed (and paying) audience. What could possibly go haywire in an ethical society of nerdy do-gooders?

Everything! despite the edge-of-the-seat trailers, a sterling cast and more turns and twists than a flying monkey, this flick was a flop! Join me in examining why this fateful production that was slated to gross millions ended up in a heap like a farmhouse in a tornado. (Warning: spoilers ahead.)

Plot Summary: Pay No Attention to the Man Behind the Curtain

Our story begins in 2003 with our perky young heroine, Elizabeth Holmes, on a crusade to spawn an inexpensive medical testing device requiring just one drop of blood for accurate disease analysis.

Spinning a heart-wrenching story involving a dead relative and an acute fear of needles, Holmes manages to tug at the heartstrings of investors and media alike. Enamored with the next big tech icon – a female one at that – they wave their money wands and fill her coffers with over $700 million. And just like that – voila! – Theranos, the upstart start-up, magically appears from the Wizard’s black hat.

In the next scene, potions are concocted in the Theranos castle and all seems to be well. But behind the scenes, employees in the dungeon are feverishly slaving to get a working prototype that would meet regulatory inspections deadlines and be ready for drug trial deals with pharmaceutical kings such as GlaxoSmithKline and Pfizer. As the endless monotonous scene drags on, the sands of time slip through the hourglass – with no working product either on site or in sight.

As rumors of technological failures and cover-ups start to seep out to the press, blood chills in the veins of regulators, investors and even employees. Skies darken, and by 2015, the warmth of sunny valley media hype changes to whistleblowing thunder and whipping winds.

Sadly, by the time the worst of the storm had passed, the lightning had illuminated Theranos as the outright fraud it was. The show closes with Holmes charged with two counts of conspiracy to commit wire fraud and nine counts of wire fraud, carrying a potential sentence of 20 years in prison.

For Holmes, getting home over the rainbow looked to be a longer journey than ever (unless that home is San Quentin jail).

Cast of Characters: Are You a Good Witch or a Bad Witch?

The cast remained fairly loyal to the original characters, though with some quirky deviations. In this sequel, there was more than just one person without a brain (the venture capitalists, investors, the board, the public), a few without a heart (those who kept going while knowingly risking lives) and just a handful with courage enough to play the part of the whistleblowers.

The plot takes a sudden surprising turn when Wall Street Journal investigative reporter John Carreyrou and former Theranos employees Erika Cheung and Tyler Shultz take the stage and uncover the imposter.

Spoiler warning: One ingenious casting shocker was that the part of the Wizard wasn’t played by a human being.  Technology got the role instead — and delivered an Oscar-worthy performance as an amorphous enigma that never stepped from behind the curtain because it never existed. And the grand, didn’t-see-it-coming plot twist is when we understand that Dorothy from Kansas isn’t an innocent wunderkind lost in the woods at all. She’s the wicked witch herself!

Oh, and about the dog: Holmes’ dog, Balto, as Toto the dog just didn’t cut it.

Creative Aspects: I’ve Got a Feeling We’re Not in Kansas Anymore

The Wizard of Oz stunned and captivated its 1939 American audience with its magical flights of fancy, serving as a soothing panacea for post-depression ills in a brink-of-war era of discontent. And one single moment of cinematic genius stood out above them all: the moment the darling protagonist (Dorothy) steps out of her lackluster existence, effervescing into the vibrantly hued bubble called Oz.

This seamless transition from black and white to full color within the same scene stunned moviegoers and cinema critics alike, appearing to be a technological breakthrough in filming technique. In fact, the producers capitalized on the element of surprise to create an unforgettably powerful illusion where dreams born in dry dust could miraculously come alive. This “wow” effect led viewers to toss logic into the roaring winds of the tornado and fly over the rainbow with their heroine, forever invested in her happiness.

Sound familiar? Regarding the Theranos sequel, just switch out the words “the Land of Oz” for “Silicon Valley” and “Dorothy” for “Elizabeth” …with stock market IPO gold at the end of the rainbow.

Production: Poppies, Poppies… You’re Getting Sleepy

One of the reasons the Theranos saga dragged on so long is that supporting actors (the board, advisors and investors) stumbled with their lines and missed their cues. Maybe it had to do with the spell cast by U.S. diagnostic-lab industry crystal ball projections of $70 billion in annual sales. Apparently, the vision of unending green dollars, spread out before them like a field of narcotic poppies, lulled them into sleepy stupidity.

In fact, the board (who had no knowledge of medical or any other technology), should have been fired from the actors’ guild. They forgot their critical role in conducting financial audits or insisting on peer review research to validate the technology they were pushing out to the public. Shame on them for shirking their duties after being given such important roles in the production.

Additionally, one must note the glaring absence of a board diversity policy (maybe that document had been eaten by Balto), as the board constituents were all the same color and age, with similar credentials.

The producers should have learned a lesson from the original film: stick to munchkins, lollipop kids and horses of a different color. Then maybe there would have been a chance for differing opinions and a vast array of knowledge at the boardroom table.

Critical Response: Surrender Elizabeth!

Even with all the special effects, the Theranos remake was a crushing disappointment, both financially and critically. But let me give you a movie critic’s insider tip: There wasn’t actually a technological breakthrough in the original Oz, either.  You see, unbeknownst to 1939 audiences, the “revolutionary” color transition was nothing more than an illusion. Producers realized they could pull off the transition trick by painting half the set in sepia tones, the other half in color. When drab Dorothy’s acting double opens the door to a brilliant Oz, there was no cinematic feat at all — just an extension of the color palette that fooled the eye and the audience. Technicolor was an emerging technique at the time, which made everyone easy to convince.

So, if a dearth of “real” technology wasn’t the clincher, what’s the reason for the success discrepancy between the two movies?

The answer is as plain and simple as the fabric of Dorothy’s gingham dress: Evil winning out over ethical good. The protagonist in the Theranos sequel duped an audience that believed with all their hearts that their heroine was in search of an ethics-based dream – be it love of family or better health. By the time the credits rolled, this darling of the media, formerly valued at $10 billion, had suffered a corporate meltdown as a dramatic as the demise of the Wicked Witch of the West – to the delight of the watching crowd.

Ironically enough, if Elizabeth were both Dorothy and the Wicked Witch, she actually killed herself using the cinematic symbol of purity and life. You guessed it: Water. I guess one tiny drop DOES makes a difference (the Theranos slogan).

Rating & Recommendation: Never Having to Say Goodbye Too Soon (Another Theranos Slogan)

The last scene in the original Oz production was poignant and tearful for me as a child. Imagine saying goodbye forever to the people you love – even if they are a scarecrow, a tin man and a lion. Luckily for us, this is 2019 and not 1939, when unicorns and crystal balls were figments of the imagination existing only on the silver screen. Today, we have biotech companies so innovative that we find ourselves falling for a sleight of hand or a trick of the eye rather than insisting on slow and plodding medical research. We find no need to doubt those wizards living in the valley, those purveyors of magic – they must be beyond reproach since they’re working to save the people we love! Surely, we tell ourselves, the aggressive corporate marketing and media hype around the latest cure is more than just a passing viral marketing infection.

I give this movie a big fat zero. If the prognosis for any health care startup promises a long and healthy life (and perhaps a fat bank account), shouldn’t we all be flying down that yellow-brick road to buy a ticket to the premiere?

I don’t think so. I wouldn’t see a movie like that again. Unless, of course, I got hit on the head by the flying window of opportunity.


Tags: Board of DirectorsTheranos
Previous Post

Companies That Don’t Tackle Cybersecurity Issues Head-On Will Fail

Next Post

DFIN Survey Reveals Gaps in Implementation and Reporting of Environmental, Social and Governance Issues

Sandra Erez

Sandra Erez

Sandra Erez is Director of Global Compliance at VinciWorks, a leading provider of risk-based compliance training and software solutions. Recognizing that organizations need to go beyond ‘tick the box’ compliance in a global and highly dynamic regulatory environment, VinciWorks is on a mission to reinvent the impact that best practice compliance solutions will make in solving real compliance issues in real time.

Related Posts

kroger

Blocked, Sued and CEO-Less: How Kroger’s Board Must Navigate Triple Crisis

by Conor Johnston
June 9, 2025

Failed mergers often trigger talent exodus and shareholder fury, but strategic refocusing on core competencies can turn regulatory setbacks into...

money

CCO Salary Increases Cooling Off

by Staff and Wire Reports
June 6, 2025

35% of executives give boards high marks

seeing outside the box

Disrupters See the World Differently — and Act Accordingly

by Jim DeLoach
May 13, 2025

Critical differences in culture, technology adoption and talent strategies determine which organizations shape markets and which scramble to respond

signing deal signature

When the Ink Dries: 6 Critical Post-Transaction Areas That Make or Break M&A Success

by Jim DeLoach
April 14, 2025

Poor follow-up once the deal is closed can cause culture clashes & value erosion

Next Post
businessman standing at gap in stairs

DFIN Survey Reveals Gaps in Implementation and Reporting of Environmental, Social and Governance Issues

No Result
View All Result

Privacy Policy | AI Policy

Founded in 2010, CCI is the web’s premier global independent news source for compliance, ethics, risk and information security. 

Got a news tip? Get in touch. Want a weekly round-up in your inbox? Sign up for free. No subscription fees, no paywalls. 

Follow Us

Browse Topics:

  • CCI Press
  • Compliance
  • Compliance Podcasts
  • Cybersecurity
  • Data Privacy
  • eBooks Published by CCI
  • Ethics
  • FCPA
  • Featured
  • Financial Services
  • Fraud
  • Governance
  • GRC Vendor News
  • HR Compliance
  • Internal Audit
  • Leadership and Career
  • On Demand Webinars
  • Opinion
  • Research
  • Resource Library
  • Risk
  • Uncategorized
  • Videos
  • Webinars
  • Well-Being
  • Whitepapers

© 2025 Corporate Compliance Insights

Welcome to CCI. This site uses cookies. Please click OK to accept. Privacy Policy
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT
No Result
View All Result
  • Home
  • About
    • About CCI
    • CCI Magazine
    • Writing for CCI
    • Career Connection
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Library
    • Download Whitepapers & Reports
    • Download eBooks
    • New: Living Your Best Compliance Life by Mary Shirley
    • New: Ethics and Compliance for Humans by Adam Balfour
    • 2021: Raise Your Game, Not Your Voice by Lentini-Walker & Tschida
    • CCI Press & Compliance Bookshelf
  • Podcasts
    • Great Women in Compliance
    • Unless: The Podcast (Hemma Lomax)
  • Research
  • Webinars
  • Events
  • Subscribe

© 2025 Corporate Compliance Insights