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by tptacek 3886 days ago
Prosecution seems fabulously unlikely, given how infrequently founders have gotten in trouble with the law for misleading their investors. Holmes won't be close to the most lurid bad-faith founder claim (if that's how the story indeed ends).

This is why we have investor "accreditation".

3 comments

You'd be amazed at the seemingly minor misrepresentations that a federal prosecutor can turn into a fraud case. That said, whether or not it gets that far depends entirely on the how the investors feel about it, exactly what they were told, whether they choose to report it as a crime to the FBI, etc.
I wouldn't be too sure about that. Investor fraud isn't the only thing we're talking about here. There are questions about the accuracy of the blood tests themselves.
Indeed. I wouldn't be surprised if prosecutors take a particularly unkind view of the possibility that Holmes has potentially put lives at stake.

That said, her board is a veritable who's who of DC powerbrokers. That will definitely be a factor.