Holmes loses appeal for fraud conviction related to her blood-testing firm, maintaining her over 11-year sentence.
**Elizabeth Holmes' Fraud Conviction Appeal Denied by Court**
**Elizabeth Holmes' Fraud Conviction Appeal Denied by Court**
Former Theranos CEO Elizabeth Holmes' plea against her conviction dismissed, upholding her prison sentence.
In a significant legal setback for former Theranos CEO Elizabeth Holmes, the Ninth Circuit Court of Appeals has rejected her appeal against her 2022 conviction for defrauding investors. Holmes, who was sentenced to more than 11 years in prison, argued that critical evidence and testimonies were wrongly excluded from her trial, particularly statements from her ex-partner Ramesh "Sunny" Balwani regarding their company's financial model responsibilities. Balwani is currently serving over 12 years for similar charges.
Judge Jacqueline H. Nguyen, representing the three-judge panel, criticized the illusion presented by Theranos, labeling its promise of performing blood tests with just a drop from a finger prick as "nothing more than a mirage." She emphasized that the purported achievements promoted by Holmes and Balwani were riddled with half-truths and falsehoods.
Holmes was found guilty of conspiracy and multiple counts of wire fraud after she misled investors about the company's stability and technology effectiveness. Both she and Balwani also contested a court ruling that mandated they pay $452 million in restitution to victims, though the court upheld this order.
Holmes contended that evidence from former Theranos employees as expert testimony and a government inspection report should not have been presented, but these claims were dismissed by the court. Once a high-flying Silicon Valley startup valued at $9 billion, Theranos faced drastic decline after revelations of internal issues and technological failures emerged in 2015. Following a comprehensive investigation, both Holmes and Balwani were indicted. Holmes began her prison sentence in Texas in 2023.
Judge Jacqueline H. Nguyen, representing the three-judge panel, criticized the illusion presented by Theranos, labeling its promise of performing blood tests with just a drop from a finger prick as "nothing more than a mirage." She emphasized that the purported achievements promoted by Holmes and Balwani were riddled with half-truths and falsehoods.
Holmes was found guilty of conspiracy and multiple counts of wire fraud after she misled investors about the company's stability and technology effectiveness. Both she and Balwani also contested a court ruling that mandated they pay $452 million in restitution to victims, though the court upheld this order.
Holmes contended that evidence from former Theranos employees as expert testimony and a government inspection report should not have been presented, but these claims were dismissed by the court. Once a high-flying Silicon Valley startup valued at $9 billion, Theranos faced drastic decline after revelations of internal issues and technological failures emerged in 2015. Following a comprehensive investigation, both Holmes and Balwani were indicted. Holmes began her prison sentence in Texas in 2023.
