Bad Blood: Secrets and Lies in a Silicon Valley Startup

An apparent scientific breakthrough rests on a quicksand of deception in this riveting account of the rise and downfall of notorious biotech firm Theranos. Expanding on his award-winning investigative scoops, Pulitzer-winning Wall Street Journal reporter Carreyrou recounts how Elizabeth Holmes, a charismatic Stanford dropout, started Theranos with claims of a revolutionary blood-testing technology that needed just a few drops from a finger-prick rather than tubefulls drawn from veins with needles. Her start-up became the toast of Silicon Valley, with a $9 billion valuation and a board including former secretaries of state Henry Kissinger and George Shultz. The reality, he reports, was less stellar: the company’s flawed tests did not meet regulatory standards and gave dangerously inaccurate results, investors and journalists were snowed with fake demos, and Holmes and her second-in-command (and boyfriend), Sunny Balwani, dismissed employees’ concerns and drove many out with verbal abuse and computer surveillance. The author’s investigation is part of the story: as he pursues the truth, Theranos’s attorneys, led by Bush v. Gore lawyer David Boies, intimidate his sources with lawsuit threats. In the end it is Holmes who is targeted with a lawsuit by the Securities and Exchange Commission for “an elaborate, years-long fraud” and forced to relinquish voting control over the company and pay a six-figure penalty. Carreyrou blends lucid descriptions of Theranos’s technology and its failures with a vivid portrait of its toxic culture and its supporters’ delusional boosterism. The result is a bracing cautionary tale about visionary entrepreneurship gone very wrong. Agent: Eric Lupfer, Fletcher & Company. (May)