Elizabeth Holmes Loses Appeal in Theranos Fraud Case

In a significant ruling, Elizabeth Holmes, the founder of Theranos, has officially lost her appeal against her conviction for defrauding investors, leading to the endorsement of her more than 11-year prison sentence.

Theranos founder Elizabeth Holmes has suffered a setback after the Ninth Circuit Court of Appeals rejected her attempt to overturn her conviction for defrauding investors in her now-defunct blood-testing company. Holmes was sentenced to over 11 years in prison after being found guilty in 2022 of conspiracy and multiple counts of wire fraud related to misleading claims about the effectiveness of the company's technology.

During her appeal, Holmes argued that the trial lacked crucial evidence and testimonies, specifically those from her ex-business partner Ramesh "Sunny" Balwani, who was also implicated and sentenced to over 12 years for similar charges. She claimed Balwani's admissions regarding his role in the company’s financial model should have been included in her trial. However, Judge Jacqueline H Nguyen and her panel of judges dismissed these claims, stating that the promises made by Holmes and Balwani regarding the capabilities of Theranos were essentially "a mirage."

The court maintained that the evidence against Holmes, including internal struggles within Theranos and the stark revelations regarding the limitations of its technology, was sufficient. The grand jury's investigation that led to both Holmes and Balwani’s convictions highlighted extensive deceit aimed at investors, ultimately contributing to the company's downfall from a valuation of $9 billion to bankruptcy.

Despite contests against a court order demanding $452 million in restitution from both parties, the appellate court backed the initial ruling. With her prison sentence already underway in Texas since 2023, Holmes's legal defenses have now been conclusively quashed, affirming the consequences of her actions during the rise and fall of Theranos.