Elizabeth Holmes no good, very bad day Bail denied and a bill for $452 million
- "In January 2022, Holmes was convicted on four counts related to defrauding investors, and Balwani was convicted last July of defrauding investors, doctors, and patients.In Davila's order Tuesday, he calculated that Balwani and Holmes owe restitution of $452 million.
- Balwani is also appealing his conviction and had attempted to remain out on bail during the process.While at the helm of Theranos, Holmes and Balwani claimed their proprietary blood testing device could accurately perform hundreds of medical tests using just a tiny drop of blood from a finger prick.
- Davila agreed.Balwani, who was convicted on all 12 counts of defrauding Theranos investors and patients, already began his nearly 13-year prison term last month.
- In 2015, the company was valued at $9 billion, and Forbes listed Holmes as the richest self-made woman, with an estimated net worth of $4.5 billion.But in 2018, federal prosecutors charged the duo with scheming to dupe investors into funding their startup technology, which never actually worked.
- This allegedly involved "delivering marketing materials to doctors and patients regarding Theranos’s blood tests, posting misrepresentations on Theranos’s websites, and transmitting blood test results with inaccuracies and modifications.
- It also includes paying $14.5 million back to Safeway and $40 million to Walgreens, which partnered with Theranos to offer blood testing in the drugstore giant's neighborhood stores.
Enlarge/ Elizabeth Holmes (C), founder and former CEO of bloodtesting and life sciences company Theranos, walks with her mother Noel Holmes and partner Billy Evans into the federal courthouse for he [+4538 chars]