Thu. Jan 20th, 2022

Holmes acquitted on four charges, while the jury could not reach a verdict on three charges.

A US jury has found Theranos founder Elizabeth Holmes guilty of conspiracy to defraud investors in the blood test business. Holmes was convicted on Monday on four of 11 charges.

She was acquitted on four charges, and the jury could not reach a verdict on three charges.

Prosecutors said Holmes, 37, deceived private investors between 2010 and 2015 by convincing them that Theranos’ small machines could perform a series of tests with a few drops of blood from a finger prick.

Holmes was also charged with misleading patients about the accuracy of the tests.

Holmes gained Silicon Valley fame after founding Theranos in 2003.

Wealthy private investors, including media mogul Rupert Murdoch, have invested millions in the company after meeting with the founder who was known for her Steve Jobs-like black tortleneck.

The case shed light on Theranos’ failed attempt to revolutionize laboratory testing. The company secretly relied on conventional machines manufactured by Siemens to perform patients’ tests, prosecutors said.

Theranos collapsed after the Wall Street Journal published a series of articles suggesting that his devices were faulty and inaccurate. Holmes was charged in 2018 with Theranos’ former chief operating officer Ramesh “Sunny” Balwani.

Theranos collapsed after the Wall Street Journal published a series of articles suggesting that the blood test’s devices were faulty and inaccurate [File: David Paul Morris/Bloomberg]

She pleaded not guilty to nine counts of fraud and two counts of conspiracy. Balwani also pleaded not guilty and will be tried at a later date.

During the trial in San Jose, California, which began in September, jurors heard testimony from former Theranos employees who said they had left the company after seeing problems with its technology.

Investors testified that Holmes made misleading allegations about Theranos, such as that his machines were used in the field by the U.S. military. And former patients told jurors they would not have used Theranos’ tests if they knew the tests were flawed.

Prosecutors said if Holmes had been honest with investors and patients, the business would never have attracted critical funding and revenue.

“She chose fraud over business failure. She chose to be dishonest, “said Jeff Schenk, Assistant U.S. Attorney, at the beginning of the closing remarks. “That choice was not only callous, it was criminal.”

Holmes testified in her defense during the trial that she never intended to defraud anyone and that Theranos’ laboratory directors were in control of test quality. In the closing arguments, attorney Kevin Downey said the evidence does not show that Holmes was motivated by a cash crisis at Theranos, but rather thought she was building a technology that would change the world.

“You know that at the first sign of trouble, crooks pay out money,” but Holmes stayed, Downey said. “She went down with that ship when it fell.”

Source link

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *