Elizabeth Holmes, founder of Theranos, and Ramesh “Sunny” Balwani, its former COO, have failed in their appeals to overturn their fraud convictions and reduce their prison sentences. The Northern District Court of California upheld the verdicts against them, as well as their joint restitution order of $452 million.
Holmes and Balwani were convicted in separate trials in 2022 for misleading investors about the capabilities of Theranos’s blood-testing technology. Holmes received a sentence of over 11 years, while Balwani received nearly 13. They both began serving their sentences in 2023.
In their appeal, Holmes argued that the district court allowed improper testimony from former Theranos employees who acted as lay witnesses but offered expert opinions without the necessary credentials. The appeals panel acknowledged that some of this testimony ventured into expert territory but maintained that the errors were not significant enough to impact the outcome of the case.
Balwani also claimed that his charges were expanded during the trial and that his right to a fair trial was compromised. However, the court dismissed these arguments, stating that any issues with the government’s testimony would not have affected the verdict.
The court’s decision solidifies the convictions of Holmes and Balwani for their roles in defrauding investors and highlights the importance of accountability for corporate malfeasance.
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