Theranos Founder Elizabeth Holmes $25M in debt to her own company

Elizabeth Holmes, founder of Palo Alto, Calif.-based Theranos, owes the startup $25 million, according to a recent report from The Wall Street Journal.

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Ms. Holmes is in debt to Theranos because she reportedly bought stock in the company and deferred payment. However, the company can pardon her debt, according to the report.

“People familiar with the matter” told WSJ Ms. Holmes wanted to use her debt as collateral to dissuade investors from suing the company. She is offering investors some of her shares in exchange for an agreement to not file a lawsuit, according to the report.

Read the full story here.

 

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