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Theranos' Founder Settles SEC Lawsuit, Forfeits Company Control

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Theranos' Founder Settles SEC Lawsuit, Forfeits Company Control
Theranos' founder Elizabeth Holmes was charged with "massive fraud."
SHOW TRANSCRIPT

The founder of the once-praised blood-testing company Theranos is now facing fraud charges.

CEO Elizabeth Holmes is forfeiting control of her startup and agreed to pay a $500,000 fine as part of a settlement tied to the charges against her.

The Securities and Exchange Commission said Holmes, as well as Theranos' former President Ramesh "Sunny" Balwani, deceived investors out of more than $700 million. The SEC accused the two of making it seem like the company had a market-ready way to do "a full-range of laboratory tests from a small sample of blood."

The SEC said Balwani hasn't agreed to a settlement and said it will continue seeking legal action against him.

Additional reporting from Newsy affiliate CNN.