Elizabeth Holmes

In January 2022, Elizabeth Holmes was found guilty on four counts of investor fraud and conspiracy for misrepresenting Theranos's blood testing technology. She falsely claimed projected revenues of $100M+ when actual revenue was near zero, and misrepresented the Walgreens partnership would expand to 900 stores. In November 2022 she was sentenced to 11 years and 3 months. Holmes and co-defendant Ramesh Balwani were ordered to pay $452 million in restitution. The 9th Circuit upheld the conviction on appeal.

Elizabeth Holmes was convicted in January 2022 on four counts of investor fraud and conspiracy for misleading investors about Theranos's blood-testing technology capabilities. The company claimed its Edison device could run hundreds of tests from a finger prick of blood, but internal data showed the technology was unreliable. Holmes raised over $700M from investors based on these claims. She was sentenced to over 11 years in federal prison.

Theranos under Holmes aggressively pursued whistleblowers who raised concerns. Erika Cheung and Tyler Shultz (grandson of board member George Shultz) faced legal threats, surveillance, and intimidation after reporting concerns to regulators. The company hired private investigators to follow Shultz and pressured his grandfather to intervene. Lab director Ian Gibbons died by suicide in 2013 amid the pressure.

Theranos devices produced unreliable results for patients at Walgreens locations, including false positives and negatives for serious conditions. The company voided or corrected tens of thousands of test results in 2014-2015. CMS (Centers for Medicare and Medicaid Services) found the company's lab practices posed 'immediate jeopardy to patient health and safety' and banned Holmes from operating a lab for two years.