Governance at Theranos (A): A blindsided board

By Anand Narasimhan and Shruti Bajpai

6 pages

May 2025

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Reference: IMD-2667

This is a riveting case about poor board governance at Theranos that fostered a culture of deception and led to the company’s collapse and the criminal conviction of its celebrated founder, Elizabeth Holmes. Case A outlines the establishment and growth of Theranos, it’s board expansion and the issues that led to the Wall Street Journal article that raised serious questions regarding the truth of the company’s claims about its product.

Learning Objective

To examine the role and responsibilities of corporate boards in high-growth, founder-led companies.
To understand how board composition and independence impact organizational accountability.

Keywords

Business Ethics, Governance, Leadership, Board

Settings

America, United States of America
Theranos, Manufacturing, Biotechnology
2003-2022

Type

Published Sources

Available Languages

English

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Teaching note

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This case study is part of a series

Governance at Theranos (A): A blindsided board
Governance at Theranos (B): The aftermath

This case study is part of a series

Governance at Theranos (A): A blindsided board
Governance at Theranos (B): The aftermath

Governance at Theranos (A): A blindsided board

By Anand Narasimhan and Shruti Bajpai
Case reference: IMD-2667 ©2025

Summary

This is a riveting case about poor board governance at Theranos that fostered a culture of deception and led to the company's collapse and the crim...

Reference IMD-2667

Organization Theranos

Industry Manufacturing, Biotechnology

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications