Feature

Theranos Investor FOMO Is Due Diligence Lesson, Attys Say

By Dorothy Atkins (November 16, 2021, 3:00 PM EST) -- Testimony in ex-Theranos CEO Elizabeth Holmes' criminal fraud trial has revealed that many investors who funded the beleaguered blood-testing company leading up to its $10 billion valuation appeared to be influenced by a "fear of missing out," or FOMO, a stark lesson in the dangers of skipping due diligence, according to legal pros.

Dykema Gossett PLLC member Jason Ross, who successfully defended a former Enron executive vice president from criminal fraud charges, told Law360 there's no doubt that Theranos investors who allege they were victims of the former CEO's fraud were sophisticated.

Despite their experience, many investors who have taken the...

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