Theranos, the blood-testing company Holmes founded in 2003 and which is 50% owned, has been hit by allegations that its products are not working as advertised
Elizabeth Holmes, the “golden girl” of Silicon Valley, the founder and former CEO of Theranos, is facing trial this week, more than three years after she was indicted on multiple federal fraud and conspiracy charges over allegations that she intentionally had the abilities misled. of her company’s proprietary blood-testing technology. Now newscasters want to know more about her and her net worth as US prosecutors demand 20 years in prison and a nearly $3 million fine for Holmes.
Federal prosecutors in California’s Northern District have accused Holmes and Ramesh “Sunny” Balwani, former president of Theranos and for a time her romantic partner, of defrauding investors and patients. They each face two counts of conspiracy to commit telephone fraud and 10 counts of wire fraud for allegedly being involved in “a multimillion-dollar scheme to defraud investors and a separate plan to defraud doctors and patients,” the indictment said. Holmes, 37, and Balwani, 56, who will be tried separately, pleaded not guilty. Holmes faces multiple counts of wire fraud and conspiracy to commit wire fraud after a 2015 Wall Street Journal investigation cast doubt on the reliability of Theranos’ product.
The newly unsealed court files come as jury selection for Holmes’ trial begins on Tuesday, August 31. The news about the submissions is important because they indicate Holmes’ possible defense strategy. One of the files noted that Holmes is expected to say she was sexually and physically abused by Balwani, including that he threw “hard, sharp objects” at her, according to NPR. “This pattern of abuse and coercive control continued throughout the approximately ten-year relationship between Ms. Holmes and Mr. Balwani, including during the period of the indicted conspiracies,” the file said.
According to the documents, potential witnesses to be called include prominent investors such as Theranos former board members Henry Kissinger and Jim Mattis, Fox Corp chairman Rupert Murdoch, and Riley Bechtel, the former chairman of Bechtel Corp. Doctors who used the tests on their patients and those who were misled by Theranos may also be witnesses in the case. Among them is a woman whose test results falsely indicated a miscarriage despite a healthy pregnancy and a man who was falsely stated to have prostate cancer and two others who received false-positive HIV test results.
What is Elizabeth Holmes’ net worth?
Born on February 3, 1984, Elizabeth Anne Holmes founded Theranos, a now-defunct health technology company. Theranos rose in appreciation after the company claimed to have revolutionized blood testing by developing testing methods that could use surprisingly small amounts of blood, such as from a finger prick. In 2015, Forbes named Holmes the youngest and richest self-made female billionaire in America based on a $9 billion valuation of her company. In 2016, following revelations of possible fraud, Theranos’ allegations, Forbes revised its published estimate of Holmes’ net worth to zero and Fortune named her one of the “World’s Most Disappointing Leaders”.
According to the Forbes report, Holmes had a net worth of $4.5 billion. “But Theranos, the blood-testing company she founded in 2003 and of which she owns 50%, has been hit with allegations that its products are not working as advertised and is under investigation by an alphabet soup of federal agencies.” Speaking to many venture capitalists, analysts and industry experts, Forbes said a “more realistic value for Theranos is $800 million, rather than the $9 billion indicated by the latest funding round. That gives the company credit for its intellectual property.” and the $724 million it has raised, according to VC Experts, a research firm, even though some of that has already been spent building labs and research. It also represents a generous multiple of the company’s revenue.”