Ramaswamy was one of the first investors in Theranos and served as the company's president and chief legal officer from 2003 to 2010. During his time at Theranos, he was involved in the company's fundraising efforts and helped to create the narrative that Theranos's technology was a breakthrough that could revolutionize the blood testing industry.
However, after Theranos's problems were exposed, Ramaswamy was accused of misleading investors about the company's technology. In particular, he was accused of making false statements about the accuracy and reliability of Theranos's blood tests.
Ramaswamy has denied these allegations, but he settled a lawsuit with the Securities and Exchange Commission (SEC) in 2018 without admitting or denying wrongdoing. As part of the settlement, he agreed to pay $200,000 and to be barred from serving as an officer or director of a public company for five years.
The SEC's investigation into Theranos found that the company had made "numerous false and misleading statements" to investors about its technology. Theranos's blood tests were not as accurate or reliable as the company claimed, and the company had not conducted the necessary clinical trials to support its claims.
As a result of the SEC's investigation, Elizabeth Holmes, the founder and CEO of Theranos, was convicted of fraud and sentenced to 11 years in prison. Ramaswamy was not charged with any criminal offenses, but he was still held accountable for his role in the company's deception.
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