[Follow live news updates on the fraud trial of Elizabeth Holmes.]
In 2018, america charged Elizabeth Holmes and her enterprise associate, Ramesh “Sunny” Balwani, with 9 counts of wire fraud and two counts of conspiracy to commit wire fraud.
The indictment accuses the pair of participating in a “scheme, plan and artifice to defraud traders as to a cloth matter.”
In different phrases, they’re accused of mendacity about Theranos’s enterprise and know-how to get cash. The lies outlined within the indictment embody claims Theranos made about its relationship with the navy and the standing of its partnership with Walgreens. Prosecutors additionally say that Theranos faked demonstrations of its know-how and falsified validation stories from pharmaceutical firms and the monetary well being of its enterprise.
Wire fraud is a felony that carries a most penalty of 20 years and potential fines. Theranos additionally paid a $500,000 superb to settle civil securities fraud expenses with the Securities and Trade Fee in 2018. It additionally settled a number of lawsuits with traders and companions earlier than dissolving that yr.
For the reason that legal indictment, the circumstances of Ms. Holmes and Mr. Balwani have been separated. Mr. Balwani faces trial subsequent yr. Additional, among the expenses in opposition to Ms. Holmes have been dropped and others added. As of right now, Ms. Holmes faces 11 counts of fraud and conspiracy to commit fraud.
She has pleaded not responsible.