Elizabeth Holmes' Conviction Upheld by US Court
A U.S. court upheld the convictions of Theranos' founder Elizabeth Holmes and President Ramesh "Sunny" Balwani on Monday, on charges of defrauding investors in the failed blood testing startup once valued at $9 billion. The three-judge panel for the 9th U.S. Circuit Court of Appeals in San Francisco rejected claims of legal errors at their separate trials held in 2022. Holmes, who started Theranos as a college student and became its public face, was indicted alongside Balwani, her former romantic partner, in 2018.
- The high-profile conviction serves as a significant deterrent to executives who might consider engaging in similar deception to gain an unfair advantage in the business world.
- How will this verdict impact the regulatory environment for emerging biotech startups and the scrutiny they face from investors and the public?