An interesting side note about this story is the homogeneity and lack of relevant background among Theranos's board of directors. All the outside directors were white, prestigious (former generals, senators, cabinet secretaries, etc) and relatively old. Research shows that homogenous groups are less likely to challenge each other.
My coauthor and I wrote about this in our book Meltdown (Published by Penguin Press in in March). We drew on Carreyrou's excellent reporting and some pretty interesting research about how team diversity affects decision making.