Elizabeth Holmes of Theranos will go on trial next summer to face criminal fraud charges for professedly defrauding investors, doctors and the general public as the head of the as soon as-heralded blood-testing startup – Theranos.
US District Court, Judge Edward Davila ruled on Friday that the trial against Holmes and the corporate’s former Chief Operating Officer Ramesh Balwani will begin July 28, 2020.
Prosecutors allege that Holmes and Balwani consciously misled investors, policymakers and the general public in regards to the precision of Theranos’ blood-testing technologies.
The two pleaded of not guilty to wire fraud and conspiracy to commit wire frauds. If convicted, they might every face most penalties of 20 years in prison and a $2.75 million fine, plus potential restitution, the Department of Justice stated.
Holmes dropped out of the Stanford University at the age of 19 to found Theranos in 2003 – pitching its technology as a cheaper way to run dozens of blood tests with only a prick of a finger and some droplets of blood.
A spectacularly secretive company, Theranos shared very little about its blood-testing machine with the general public or medical community. Holmes mentioned that she was inspired to start the company in response to her fear of needles.
Investors purchased what Holmes was selling and invested hundreds of thousands of dollars within the firm. At one time, Theranos was price higher than $10 billion and Holmes, the nation’s youngest self-made female billionaire.
An investigation led by The Wall Street Journal in 2015 discovered that Theranos’ technology was fallacious at best and the company was using – routine blood-testing equipment for the astounding majority of its assessments. The story raised problems concerning the accuracy of Theranos’ blood testing tech, which put sufferers susceptible to having situations both misdiagnosed or ignored.
Last year, Holmes forfeited management of Theranos and agreed to pay a $500,000 — fine to settle fees by the Securities and Exchange Commission that she had committed a “huge fraud” that saw investors drained $700 million into the firm.