Final answer:
Yes, the Theranos board failed to fulfill its duties. Their failure to exercise due diligence and verify the accuracy of the company's claims led to financial losses and damaged trust in the healthcare industry.
Step-by-step explanation:
Yes, the Theranos board failed to fulfill its duties. Theranos was a healthcare company that claimed to have developed revolutionary blood-testing technology, but it was later discovered that their technology did not actually work as claimed. The board, which consisted of prominent individuals from various industries, should have exercised due diligence in understanding and overseeing the company's operations and technology. However, they seemingly failed to question and verify the accuracy of the claims made by the founder and CEO, Elizabeth Holmes.By not fulfilling their duties, the board allowed Theranos to operate based on false pretenses and misled investors and the public. They also failed to implement proper corporate governance practices, such as ensuring transparency and accountability. The consequences of their failures resulted in financial losses for investors, legal action against the company and its executives, and damaged trust in the healthcare industry.In conclusion, the Theranos board's failure to fulfill its duties had far-reaching consequences and highlighted the importance of strong corporate governance in ensuring the integrity and success of a company.