Surely the doctors and the patient victims were not responsible for this misplaced trust.
They trusted Theranos relying upon the brand value of the gilded names promoted by Theranos as its governance oversight, presuming somebody truly conducted some genuine diligent reviews. Secretary of Defense William Perry and -- surprisingly -- the tough-minded former CEO of Wells Fargo Richard Kovacevich .
If someone presents you with a spreadsheet of the last month's stock prices and asks you to pick the date on which you want to pretend that you granted, or were granted, several million options, might that not at least spur further inquiry?
When then-general counsel Nancy Heinen emailed Apple (AAPL) CEO Steve Jobs such a spreadsheet on January 30, 2001, she noted that it was a bad idea to choose January 2 as the grant date--even though that was the day the stock had been at its lowest--if they wanted "to avoid any perception that the Board was acting in appropriately [sic] for insiders prior to Macworld announcements." (They ultimately chose one of the next-best dates from after Macworld.) Now isn't it obvious to everyone on that email that shareholders are being misled?
The moment a businessman, a financial firm, is reported to be “under investigation” or about to be indicted, the individual or firm is isolated, instantaneously “on trial.” The repeated pattern of politically and ideologically motivated crusades, energized by reporters hungry for the great expose, seems to matter little.
Each time, the attention of the world is arrested by the new outrage.
It goes without saying that they also won't realize that, in reality, it's all being done a month later.
Didn't they understand that ethics is a slippery slope; that once you compromise on this, there is no turning back?
Sadly, we have seen too many ethical lapses and lack of disclosure to shareholders in the technology world.
There have been genuine criminals in the business world, of course; few men have destroyed as much wealth, and hurt so many lives, by sheer fraud, as Bernard Madoff.
But for every Bernard Madoff, whose crimes are clear and specific, there are dozens of businessmen of towering achievement, such as Michael Milken and Frank Quattrone, whose supposedly terrible deeds very few recall, except for the vague impression that they did something “awful.” Such victims of media “rich-hunts” and prosecutors’ ambition—in truth, victims of a political ideology and animus—rarely have many defenders.