Elizabeth Holmes’s attempt to have the court revisit her conviction appeal is denied.

Elizabeth Holmes Faces Legal Setback

Former Theranos CEO Elizabeth Holmes experienced a significant legal setback on Thursday as an appeals court denied her request for a rehearing of her case.

The 9th Circuit Court turned down Holmes’ appeal, which sought reconsideration from a previous panel of three judges that had upheld her fraud conviction in 2022.

The court clarified that none of the circuit judges had called for a full court review of the case.

Holmes’ partner, Billy Evans, chose not to comment when approached, and her attorney was unavailable for immediate remarks.

In January 2023, Holmes was sentenced to 11 years and three months in prison. She was found guilty of four counts of wire fraud for misleading investors regarding the efficacy and accuracy of Theranos’ blood testing technology.

Holmes established the startup in 2003 after leaving Stanford University, and it quickly gained prominence for its ambitious claims to transform blood testing.

She asserted that Theranos could conduct hundreds of medical tests using just a few drops of blood, which garnered significant attention and financial backing, including partnerships with major companies like Walgreens and Safeway.

By 2014, Theranos had reached a valuation of nearly $9 billion, while Holmes herself was reportedly worth around $4.5 billion. However, the company’s credibility began to unravel in 2015 following whistleblower disclosures by Erika Chong and Tyler Schultz.

Their findings were notably highlighted by Wall Street Journal reporter John Carreyrou, who revealed that Theranos’ “Edison” machine frequently delivered unreliable results and was only utilized for a small fraction of the tests the company promoted.

This led to increased regulatory scrutiny and subsequent legal actions against Holmes and former Theranos President Ramesh “Sunny” Balwani, who were charged with fraud in 2018.

Holmes resigned as CEO, and Theranos ceased operations later that same year. At her 2021 trial, prosecutors provided compelling evidence of how Holmes deceived investors, patients, and regulators.

She faced several charges tied to fraudulent patients, of which she was acquitted, but was ultimately convicted of four counts related to investor fraud.

Her legal team contended that procedural errors occurred during the trial and expressed Holmes’ firm belief that Theranos’ technology would succeed in the end.

Nonetheless, the Court of Appeals found these arguments lacking in merit and upheld her lengthy sentence.

The narrative surrounding Theranos has been further popularized through Carreyrou’s book “Bad Blood,” an HBO documentary, and Hulu’s drama series “The Dropout,” featuring Amanda Seyfried as Holmes.