Billionaire lost everything overnight

Just last year, Elizabeth Holmes - founder of Theranos was the richest self-made female billionaire in America with 4.5 billion USD.

But recently, Forbes magazine announced that it had lowered her estimated fortune to zero. They also removed Holmes from the rich list, at least for now.

Forbes said it revalued Theranos due to recent investigations and allegations against the company. Theranos was previously valued at $9 billion.

Holmes was once the richest self-made female billionaire in America. Photo: Forbes

From conversations with analysts and investors, Forbes believes the company is now worth just $800 million. That includes intellectual property rights. That means Holmes’ 50% stake in the company will be gone, as investors will get their money first. They hold preferred stock, not common stock like Holmes.

Meanwhile, Theranos also refused to share confidential financial information with Forbes. They are still a private company.

"So Forbes relied entirely on rumors and press reports," Theranos spokeswoman Brooke Buchanan told CNN.

Holmes dropped out of Stanford and founded Theranos in 2003 at the age of 19. She raised millions of dollars by claiming that her technology could “rapidly run a wide range of tests from just a few drops of blood,” but that promise has recently come under question.

In October 2015, a Wall Street Journal article claimed that Theranos had performed very few blood tests with its device. Since then, everything related to the company, from its leadership to its testing methods, has been closely monitored.

Theranos is under investigation by the Centers for Health Care Services, the Securities and Exchange Commission, and the Justice Department. Last week, it received three lawsuits alleging inaccurate test results and false advertising.

According to VNE