John Carreyrou$$s October $2015$ article led to a series of further investigations into Theranos:

In November $2015,$ the U$.$S$.$ government agency Centers for Medicare and Medicaid Services $($CMS$)$ visited Theranos$$s lab in Newark, California, and found that the lab did not meet certain requirements to perform laboratory testing. After issuing a report warning Theranos of the noncompliance in July $2016,$ it revoked the company$$s license to operate a lab in California and banned Holmes from owning or operating a lab for two years.

A second Theranos lab in Arizona was also shut down. As a result, the company laid off $340$ employees, or $40\%$ of its workforce.

The U$.$S$.$ Securities and Exchange Commission began an investigation into the deception at Theranos.

Federal prosecutors began a criminal investigation into the company.

In May $2016,$ Sunny Balwani resigned from his role as president and COO. $($In doing so$,$ he also ceased to be a member of the board of directors.$)$

In June $2016,$ Walgreens announced that it was ending its partnership with Theranos.

In November $2016,$ two people who had invested in Theranos, Robert Coleman and Hillary Taubman$-$Dye, filed a class$-$action lawsuit against the company. The central claim of the lawsuit was that Theranos and its officers had violated California law and engaged in securities fraud by making statements that were false and misleading to induce people to invest in the company.

The plaintiffs maintained that they, and other investors, had relied on this public information$$including press releases from Theranos and media coverage such as statements in articles in major newspapers$$when making their investment decisions.

As you may recall from Module $1,$ in the United States, something is common law fraud if:

There is false representation

Of a material fact

Knowingly made

With intent to deceive

Which is reasonably relied on

To the injury of the deceived party

What is your initial reaction to the Theranos case? Is it a case of $$fake it till you make it$,$ meaning adopting an air of confidence in a developing idea? Or would you consider it fraud?