In brief
The Ninth Circuit Court of Appeals has upheld the fraud conviction of Elizabeth Holmes, the founder of Theranos, after she claimed trial errors and sought to alter her sentencing.
Theranos founder Elizabeth Holmes has faced a significant setback in her efforts to overturn her fraud conviction as the Ninth Circuit Court of Appeals dismissed her appeal. Holmes, who once led the now-defunct blood-testing startup valued at an astonishing $9 billion, was sentenced to over 11 years in prison after being convicted of conspiracy and multiple wire fraud charges in 2022 for deceiving investors regarding the company's financial status and technological capabilities.In her appeal, Holmes sought to challenge various pieces of trial evidence and testimonies. She argued that comments made by her former business partner, Ramesh "Sunny" Balwani, about his responsibilities regarding Theranos’ financial practices should have been considered. Balwani, sentenced to over 12 years for similar charges, also had his appeal rejected. The court's response, delivered by Judge Jacqueline H Nguyen, characterized Theranos’ claims about its blood-testing capabilities as "nothing more than a mirage." In the opinion shared publicly, Nguyen highlighted that the assertions from Holmes and Balwani were a series of misleading half-truths and outright deceit.Despite the overwhelming evidence laid out during the trial, Holmes tried to argue against the inclusion of testimony from former employees, as well as a government inspection report that indicated critical failures in Theranos’ technology. However, the court evaluated and dismissed these claims.Following the exposure of Theranos' fundamental limitations in late 2015, a grand jury indictment led to both Holmes and Balwani being brought to justice. Holmes is currently serving her sentence in Texas.
