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Theranos directors kept quiet during mounting company missteps
(Bloomberg) — Two former Theranos Inc. directors said they didn't think to question executives as allegations arose that the struggling startup used existing blood-testing technology rather than its heralded system to analyze samples.
More: How Walgreens says it was scammed by Theranos
Former U.S.
Secretary of State George Shultz and retired U.S. Navy Admiral Gary Roughead, who served on Theranos' board acknowledged that they failed to confront Chief Executive Elizabeth Holmes about the allegations because they believed her claims about the technology's capabilities, according to court documents unsealed May 26 in Delaware.
"That's what I assumed," Shultz testified under oath April 4.
"I didn't probe into it. It didn't occur to me."
Excerpts from the depositions were made public in an investor's lawsuit accusing Theranos officials of misrepresenting the company's performance and technology in order to