Theronos Founder Elizabeth Holmes’ Fraud Trial Set To Begin
Theronos founder Elizabeth Holmes‘ trial is set to begin with opening statements from prosecutors and defense lawyers on both sides. Holmes’ trial has been highly anticipated and is expected to last for three months.
Standford dropout Holmes started her company, Theranos, in 2003 and went on to be highly successful. The medical company said it had revolutionized blood-analysis technology, claiming to be able to test blood accurately from a single pin-prick. The company had prestigious investors and was soon valued at over $9 billion. Holmes graced magazine covers, Forbes lists and was touted to be the next Steve Jobs.
In 2015, the company began to fall from grace. Investigative journalists noted that Theranos hadn’t contributed peer-reviewed work to major medical journals. Further digging revealed that Theranos had been greatly exaggerating their claims of efficacy and that the company used traditional blood-testing machines instead of the Edison devices they pioneered. Allegations of fraud circulated surrounding Holmes and Theranos soon began to take their toll. In 2018, the company was forced to shut down.
Later in 2018, Holmes and Theranos COO/President Ramesh “Sunny” Balwani were indicted by a federal grand jury for nine counts of wire fraud and two counts of conspiracy for wire fraud.
Holmes and Balwani have since been embroiled in legal battles. The trial had been postponed due to COVID-19 and Holmes’ pregnancy.