Elizabeth Holmes, the founder and former CEO of Theranos, has lost her appeal against her conviction for defrauding investors in her blood-testing startup, BBC reports.
The Ninth Circuit Court of Appeals upheld her conviction and 11-year prison sentence, rejecting arguments that trial evidence and testimony were improperly handled.
Holmes had challenged the court’s decision, arguing that statements made by her former business and romantic partner, Ramesh “Sunny” Balwani, regarding his role in Theranos’ financial operations should have been considered in her trial. Balwani, who was sentenced to over 12 years for his involvement, also lost his appeal.
The three-judge panel, in an opinion written by Judge Jacqueline H. Nguyen, dismissed these claims, stating that Theranos’ promises of revolutionary blood-testing technology were “nothing more than a mirage” and that Holmes and Balwani misled investors with “half-truths and outright lies.”
In addition to upholding the convictions, the court also affirmed the order requiring Holmes and Balwani to pay $452 million in restitution to defrauded investors.
Once valued at $9 billion, Theranos collapsed after investigative reports in 2015 exposed major flaws in its technology and internal operations. Holmes was convicted in 2022 and began serving her prison sentence in Texas in 2023.
