Theranos founder Elizabeth Holmes to face trial on fraud charges next July
Elizabeth Holmes, the founder of scandal-ridden health tech company Theranos, is set to go on trial next summer to face criminal charges for allegedly defrauding investors, doctors and the public, The Associated Press reported.
Holmes founded Theranos in 2003, claiming that the company would be able to conduct clinical tests using only small amounts of blood, an innovation that would revolutionize blood testing and health services.
Starting in 2013, the Justice Department alleges, Holmes and former company president Ramesh “Sunny” Balwani started making grand claims to investors about the company and its technology that were false or misleading.
{mosads}U.S. District Court Judge Edward Davila ruled last week that the trial against the two will begin July 28, 2020.
The two have pleaded not guilty to wire fraud and conspiracy to commit wire fraud.
If convicted, they could each face 20 years in prison.
Last year, Holmes stepped down from leadership of Theranos and agreed to pay a $500,000 fine to settle charges by the Securities and Exchange Commission that she had committed a “massive fraud” that saw investors pour $700 million into the firm.
The company announced in September that it would formally dissolve and pay out any remaining cash to creditors.
The case has received renewed attention nationwide with the recent release of “Bad Blood,” a book on Theranos’s demise by Wall Street Journal reporter John Carreyrou, and the ABC Radio podcast “The Dropout.”
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