66°
Baton Rouge, Louisiana
7 Day Forecast
Follow our weather team on social media

Elizabeth Holmes found guilty on four out of 11 federal charges

11 months 5 days 3 hours ago Tuesday, January 04 2022 Jan 4, 2022 January 04, 2022 4:24 AM January 04, 2022 in News
Source: CNN
Elizabeth Holmes, founder and CEO of failed health technology company, Theranos

SAN JUAN, California - A jury in federal court on Monday found Elizabeth Holmes, the founder and CEO of a now-defunct health technology company called Theranos, guilty of deliberately misleading investors in Theranos, the company she started to revolutionize blood testing.

According to CNN, there was a time when Holmes was widely praised and her blood-testing startup was worth billions.

In 2014, Forbes recognized Holmes as the world's youngest self-made female billionaire and ranked her #110 on the Forbes 400 in 2014. Theranos was valued at $9 billion and had reportedly raised more than $400 million in venture capital.

But as of January 2022, after a three-month-long trial, the 37-year-old leader of the now-failed startup has been found guilty on three counts of criminal wire fraud and one count of conspiracy to commit wire fraud.

CNN notes that Holmes was also found not guilty on three additional charges concerning defrauding patients and one charge of conspiracy to defraud patients. 

The trial played out in Judge Edward Davila's San Juan, California courtroom and the jury, comprised of eight men and four women, deliberated for over 50 hours before returning a verdict on eight of the 11 charges.

Over 30 witnesses testified during the trial, including Holmes herself, who took the stand for seven days in her own defense.

The issues that led up to the trial began in 2015 when The Wall Street Journal took a deeper look into Theranos.

The Journal reported that only a small amount of tests were carried out with the company's testing machine, Edison, while a vast amount of tests were actually being run on other companies' machines, using diluted blood samples.

The accuracy of test results patients received from Theranos was also called into question.

These accusations led to charges being filed against Holmes in 2018, a settlement with the Securities and Exchange Commission, as well as the permanent shuttering of Theranos.

Holmes now faces up to 20 years in prison as well as a fine of $250,000 in addition to restitution for each count.

“The guilty verdicts in this case reflect Ms. Holmes’ culpability in this large-scale investor fraud, and she must now face sentencing for her crimes," a spokesman for U.S. Attorney for the Northern District of California Stephanie Hinds told reporters outside the courthouse.

It is anticipated that Holmes will appeal the decision, though neither Holmes nor her attorneys confirmed the possibility.

More News

Desktop News

Click to open Continuous News in a sidebar that updates in real-time.
Radar
7 Days