in the Tyler Shultz interview Tyler Shultz discovered the problems with Theranos’ blood testing protocol. Do you believe any other employees knew this testing protocol did not work? 2. Do you think you would have acted the same way as Tyler in this situation? 3) If faced with a whistleblowing situation in the future, would your knowledge of Tyler Shultz’s situation influence your decision to report misconduct?
in the Tyler Shultz interview Tyler Shultz discovered the problems with Theranos’ blood testing protocol. Do you believe any other employees knew this testing protocol did not work? 2. Do you think you would have acted the same way as Tyler in this situation? 3) If faced with a whistleblowing situation in the future, would your knowledge of Tyler Shultz’s situation influence your decision to report misconduct?
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Question
in the Tyler Shultz interview Tyler Shultz discovered the problems with Theranos’ blood testing protocol. Do you believe any other employees knew this testing protocol did not work?
2. Do you think you would have acted the same way as Tyler in this situation?
3) If faced with a whistleblowing situation in the future, would your knowledge of Tyler Shultz’s situation influence your decision to report misconduct?
Transcribed Image Text:Tyler Shultz, the grandson of George Shultz, started as an
intern at Theranos in 2013, between his junior and senior
years of college at Stanford. While interning at Theranos,
Tyler decided to change his major from engineering to
biology because he was so taken with the mission of the
organization. After graduating with a degree in biology, he
started work full-time at Theranos, as a research engineer,
but he quickly figured out that something in the diagnostic
numbers wasn't adding up. When Tyler sent information to
the statistics team, knowing that it did not meet the
validation requirements, it would mysteriously come back
as validated. The lab and the validation reports were using
different numbers to describe the same tests. He also
figured out that Theranos was inaccurately telling other
companies and the public about what its machines could
do. No one knew how the machines actually worked.
When inspectors came, they were not allowed into the
room where the Theranos machines were testing blood
samples. This was because Theranos was using third party
equipment, rather than Theranos products, to analyze the
vast majority of patient tests. Instead of immediately
blowing the whistle, Tyler decided to bring up his concerns
internally. He talked to Elizabeth and others in senior
leadership positions in the company, only to be met with
hostility. When Tyler tried to meet with Elizabeth a second
time, she said she was too busy and that Tyler should write
her an email. His email was returned by Sunny, in which
he insulted Tyler and threatened him. Tyler also tried to
explain to his grandfather what was going on, but his
grandfather didn't believe him. His parents urged him to
quit but to say the reason for quitting was to get his PhD,
so as not to make waves. Ultimately, after only eight
months of working at Theranos, Tyler resigned in 2015. He
was 23 years old at the time
Transcribed Image Text:Originally, Tyler did not consider talking with a reporter. As
John Carreyrou, the Wall Street Journal reporter, explains
in his book, Carreyrou sent Tyler a Linked In message and
asked if he wanted to talk to him about Theranos. Tyler
decided to reach out to Carreyrou via burner phone, and
he eventually became a central anonymous source for
Carreyrou's articles on Theranos.
In the two years that followed, Tyler had to defend himself
against various legal threats from Theranos. He even had
private investigators following him. Theranos's legal team
tried to get him to sign several affidavits saying he had
been talking to the Wall Street Journal, and they employed
a variety of bullying tactics to convince him to do so. They
also tried to convince Tyler to out other whistleblowers.
Throughout this whole ordeal, Tyler remained steadfast in
his commitment to doing the right thing while also having
the added complexity of his family's involvement in the
company. His grandfather didn't believe Tyler when he
came to him with his concerns, and his grandfather tried
to broker a deal between Tyler and Theranos. All the while,
Elizabeth Holmes continued to attend Shultz family
functions.
Eventually, Carreyrou's reporting exposed Theranos for
what it was: an elaborate corporate fraud. Tyler's family
had to spend $400,000 on legal fees to defend against
Theranos's threats.
After leaving Theranos, Tyler worked at Stanford's Center
for Magnetic Nanotechnology. Currently, he is the CEO
and Co-Founder of Flux Biosciences Inc., a start-up that
aims to bring medical grade diagnostics into the homes of
consumers.
Expert Solution
Step 1: Introduction
Tyler Shultz's experience at Theranos is a compelling case that raises critical questions about corporate ethics, individual integrity, and the challenges of whistleblowing. His journey as an intern-turned-employee at the controversial health technology company founded by Elizabeth Holmes, and subsequent role as a key source for investigative journalist John Carreyrou, offers valuable insights into the complexities of confronting wrongdoing within an organization. In this answer, we will delve into Tyler Shultz's discoveries, his response to the situation, and the broader implications for whistleblowing in corporate environments.
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