The United States Securities and Exchange Commision announced it was filing charges of "Massive Fraud" against Elizabeth Holmes and her Initial Coin Offering, Theranos Labs. Curiously the press release revelaing charges also announced that a settlement has already been agreed to (archived). Also curiously absent from mainstream pantsuit coverage of the charges is the scent of corruption allowing the well connected pantsuits to escape with this sweetheart settlement:
Theranos and Holmes have agreed to settle the fraud charges levied against them. Holmes agreed to pay a $500,000 penalty, be barred from serving as an officer or director of a public company for 10 years, return the remaining 18.9 million shares that she obtained during the fraud, and relinquish her voting control of Theranos by converting her super-majority Theranos Class B Common shares to Class A Common shares. Due to the company’s liquidation preference, if Theranos is acquired or is otherwise liquidated, Holmes would not profit from her ownership until – assuming redemption of certain warrants – over $750 million is returned to defrauded investors and other preferred shareholders. The settlements with Theranos and Holmes are subject to court approval. Theranos and Holmes neither admitted nor denied the allegations in the SEC’s complaint.