The fraud conviction of Elizabeth Holmes, founder of the now-defunct blood-testing startup Theranos, has been upheld by the U.S. Court of Appeals for the Ninth Circuit.This decision mandates that Holmes continue serving her 11-year prison sentence, marking a pivotal moment in a case that has captivated both the tech industry and the public.
Appeals Court Upholds Conviction
On February 24, 2025, a three-judge panel from the Ninth Circuit affirmed Holmes’s conviction on multiple counts of wire fraud and conspiracy to commit wire fraud. The court’s 54-page opinion, authored by Judge Jacqueline Nguyen, concluded that the trial was conducted fairly and that the evidence presented was sufficient to support the jury’s verdict. The panel also upheld the $452 million restitution order jointly imposed on Holmes and her former business partner, Ramesh “Sunny” Balwani.
Background of the Case
Elizabeth Holmes founded Theranos in 2003, claiming to revolutionize blood testing with technology that could perform a wide array of tests from just a few drops of blood. These assertions attracted significant investments, valuing the company at $9 billion at its peak. However, investigations revealed that Theranos’s technology was largely ineffective, leading to charges of fraud against Holmes and Balwani. In January 2022, Holmes was found guilty on four counts related to defrauding investors. She began serving her sentence in May 2023 at a minimum-security federal prison in Texas.
Legal Arguments and Court’s Rationale
In her appeal, Holmes’s defense argued that the trial court committed errors, including allowing former employees to testify as lay witnesses and admitting certain evidence they deemed prejudicial. The Ninth Circuit panel, however, found these claims unpersuasive, stating that the district court acted within its discretion and that any potential errors did not affect the trial’s outcome.
Implications and Future Prospects
Legal experts suggest that this appellate decision significantly narrows Holmes’s options for overturning her conviction. She may seek a rehearing en banc, where a larger panel of Ninth Circuit judges would review the case, or petition the U.S. Supreme Court. However, both avenues are considered long shots. Former federal prosecutor Neama Rahmani commented, “This likely marks the end of the road for her legal challenges.”
Personal Reflections
Despite the legal setbacks, Holmes has maintained her innocence. In a recent interview, she expressed concern about the impact of her imprisonment on her family, particularly her young children. Holmes stated, “I made mistakes, but I didn’t do anything criminal.”