In His Own Words: The Theranos Whistleblower

Summary

In this interview, Tyler Shultz, a former intern and employee at Theranos, discusses his experiences that led to his whistleblowing role. Shultz, initially inspired by the company's mission, became suspicious of Theranos' technology and its accuracy. After internal complaints were met with hostility, he reached out to journalist John Carreyrou, becoming a key anonymous source for the Wall Street Journal's exposé on Theranos' fraudulent activities. Despite facing legal threats and personal surveillance, Shultz's revelations contributed to the downfall of the company and its founder, Elizabeth Holmes.

Takeaways

• 😀 Tyler Shultz, a former Theranos intern, became a whistleblower after realizing the company's technology was inaccurate and misleading.
• 🏥 Theranos was promoting a blood-testing device that was not as advanced as claimed, leading to inaccurate patient results.
• 🤝 Tyler's family had close ties with Theranos, with his grandfather, George Shultz, serving on the company's board of directors.
• 🔍 Despite internal and external warnings, Theranos leadership, including Elizabeth Holmes, dismissed concerns and retaliated against those who spoke up.
• 💼 Tyler's decision to whistleblow was met with legal threats, private investigators, and bullying tactics from Theranos' legal team.
• 📚 John Carreyrou's book 'Bad Blood' and his Wall Street Journal articles were instrumental in exposing Theranos' fraudulent activities.
• 💡 Tyler's experience highlights the importance of transparency, integrity, and the courage to challenge authority in the corporate world.
• 💸 The legal battle against Theranos' intimidation tactics cost Tyler's family $400,000 in legal fees.
• 🛑 In 2018, Theranos ceased operations, and Holmes and Balwani faced fraud charges from the SEC and criminal indictments.
• 🔬 Post-Theranos, Tyler co-founded Flux Biosciences, focusing on bringing medical diagnostics to consumers' homes, demonstrating a commitment to the field despite past challenges.

Q & A

Why did Tyler change his major from engineering to biology during his internship at Theranos?

Tyler was so taken with the mission of the organization that he decided to change his major to biology.

What was Tyler's initial reaction upon seeing the Theranos device for the first time?

Tyler quickly realized that the Theranos device was not as claimed, and he could tell it couldn't run multiple tests as advertised.

How did Tyler first attempt to address his concerns about Theranos' practices?

Tyler brought up his concerns internally, talking to Elizabeth Holmes and other senior leaders within the company.

What was the response Tyler received when he tried to discuss his concerns with his grandfather, George Shultz?

His grandfather didn't believe him and urged him to quit the company without making waves.

Why did Tyler ultimately decide to contact John Carreyrou from The Wall Street Journal?

Tyler decided to reach out to Carreyrou after he was approached via LinkedIn and saw Carreyrou's track record of impactful reporting.

What kind of legal threats and intimidation did Tyler face from Theranos after becoming a whistleblower?

Tyler faced various legal threats, private investigators following him, and bullying tactics from Theranos' legal team to convince him to sign affidavits and name other whistleblowers.

What was the outcome of the SEC's charges against Elizabeth Holmes and Sunny Balwani?

Holmes paid a fine, gave back stock, and is barred from being an officer or director of any public company for ten years. Balwani did not settle with the SEC and faced further charges.

How did Tyler's family react when they found out about his whistleblowing?

Initially, Tyler's family, including his grandfather, did not believe him. It was only after the SEC report and further revelations that his grandfather expressed pride in Tyler's actions.

What was the financial impact on Tyler's family due to the legal battles with Theranos?

Tyler's family spent around $400,000 on legal fees to fight back against Theranos' threats.

What is Tyler currently involved in, post-Theranos?

Tyler is currently the CEO and co-founder of Flux Biosciences Incorporated, a startup focused on bringing medical-grade diagnostics to consumers' homes.

How did Tyler's experience at Theranos influence his approach to leadership and business ethics in his current venture?

Tyler emphasizes the importance of trusting the people you hire and listening to their expertise, which contrasts with Elizabeth Holmes' approach at Theranos.