www.marketwatch.com Open in urlscan Pro
65.9.66.82 Public Scan

Back to summary

URL:
https://www.marketwatch.com/story/court-rejects-elizabeth-holmes-motion-to-stay-out-of-prison-while-on-appeal-578a7a6b?mod=s...
Submission: On May 19 via manual (May 19th 2023, 3:37:29 am UTC) from HK — Scanned from DE

Form analysis
0 forms found in the DOM

Text Content

Advertisement
Subscribe Now: €2 Every 4 Weeks
* Home
* Latest News
* Watchlist
* Market Data Center
* U.S.
* Cryptocurrency
* Europe
* Rates
* Asia
* Futures
* Currencies

* Markets
* U.S. Markets
* Canada
* Europe & Middle East
* Asia
* Emerging Markets
* Latin America
* Market Data

* Investing
* Barron's
* Best New Ideas
* Stocks
* IPOs
* Mutual Funds
* ETFs
* Options
* Bonds
* Commodities
* Currencies
* Cryptocurrencies
* Futures
* Financial Adviser Center
* Cannabis
* Newswires

* Barron's
* Economy & Politics
* Washington Watch
* Coronavirus
* Inflation
* The Federal Reserve
* Economic Report
* U.S. Economic Calendar

* Personal Finance
* The Moneyist
* Spending & Saving
* Retirement
* TaxWatch
* Credit Cards
* Careers
* Travel
* Real Estate
* Real Estate Listings

* Retirement
* Best New Ideas in Retirement
* Estate Planning
* Help Me Retire
* FIRE
* Taxes
* Social Security
* Real Estate
* Where Should I Retire
* Best Places

* How to Invest
* Virtual Stock Exchange
* Video
* MarketWatch 25 Years
* SectorWatch
* The Moneyist
* Getting to Work With
* Explainomics
* How to Invest
* MarketBrief
* Fire Starters
* How Bad Is It
* The Cost of Things
* Office Hours
* Best New Ideas in Money Festival
* Mastering Your Money

* Podcasts
* Live Events
* Opinion
* Investor's Business Daily
* Leaderboard
* SwingTrader
* MarketSmith
* IBDLive

* Newsletter Center
* Research & Tools
* Watchlist
* Mortgage Calculator
* Multiple Quotes Tool
* Stock Screener
* Earnings Calendar
* Market Screener
* IPO Calendar
* Short Interest
* Trending Tickers Screener
* Premarket Screener
* Options Expiration Calendar
* After Hours Screener
* Currency Tools
* Mutual Fund Screener
* Upgrades & Downgrades
* Top 25 Mutual Funds
* Mutual Fund Comparison
* Economic Calendar
* Where Should I Retire?
* Retirement Planner
* Top 25 ETFs

* MarketWatch Picks
* Money
* Guides
* Loans
* Home
* Real Estate
* Auto
* Retirement
* Health
* Banking
* Insurance
* Credit Cards
* Legal
* Technology
* Lifestyle

MarketWatch Site Logo A link that brings you back to the homepage.
* Latest
* Watchlist
* Markets
* Investing
* Personal Finance
* Economy
* Retirement
* How to Invest
* Video Center
* Live Events
* MarketWatch Picks
* More
Latest Watchlist Markets Investing Personal Finance Economy Retirement How to
Invest Video Center Live Events MarketWatch Picks

Subscribe Now
* Account Settings
* Log In
* Sign Up

Close Search Overlay

1. Home
2. Industries
3. Biotechnology
4. Associated Press

ASSOCIATED PRESS

ELIZABETH HOLMES LOSES LATEST BID TO AVOID PRISON, GETS HIT WITH $452 MILLION
RESTITUTION BILL

Last Updated: May 16, 2023 at 10:19 p.m. ET First Published: May 16, 2023 at
8:58 p.m. ET
By

ASSOCIATED PRESS

comments

COURT REJECTS FORMER THERANOS CEO’S BID TO STAY OUT OF PRISON WHILE HER APPEAL
IS HEARD

FORMER THERANOS CEO ELIZABETH HOLMES ARRIVES AT FEDERAL COURT IN SAN JOSE,
CALIF., ON OCT. 17, 2022.

Associated Press
* Email icon
* Facebook icon
* Twitter icon
* Linkedin icon
* Flipboard icon

* Print icon
* Resize icon

Your browser does not support the audio tag.
Listen to article
Length 5 minutes
00:00 / 04:35
1x

This feature is powered by text-to-speech technology. Want to see it on more
articles?
Give your feedback below or email audiofeedback@marketwatch.com.
thumb-stroke-mediumthumb-stroke-medium

SAN FRANCISCO — Disgraced Theranos CEO Elizabeth Holmes appears to be soon bound
for prison after an appeals court Tuesday rejected her bid to remain free while
she tries to overturn her conviction in a blood-testing hoax that brought her
fleeting fame and fortune.

In another ruling issued late Tuesday, U.S. District Judge Edward Davila ordered
Holmes to pay $452 million in restitution to the victims of her crimes. Holmes
is being held jointly liable for that amount with her former lover and top
Theranos lieutenant, Ramesh “Sunny” Balwani, who is already in prison after
being convicted on a broader range of felonies in a separate trial.

The Ninth Circuit Court of Appeals decision on Holmes’ attempt to avoid prison
comes nearly three weeks after she deployed a last-minute legal maneuver to
delay the start of her 11-year sentence. She had been previously ordered to
surrender to authorities on April 27 by Davila, who sentenced her in November.

Davila will now set a new date for Holmes, 39, to leave her current home in the
San Diego area and report to prison.

The punishment will separate Holmes from her current partner, William “Billy”
Evans, their 1-year-old son, William, and 3-month-old daughter, Invicta. Holmes’
pregnancy with Invicta — Latin for “invincible,” or “undefeated” — began after a
jury convicted her on four counts of fraud and conspiracy in January 2022.

Davila has recommended that Holmes serve her sentence at a women’s prison in
Bryan, Texas. It hasn’t been disclosed whether the federal Bureau of Prisons
accepted Davila’s recommendation or assigned Holmes to another facility.

Balwani, 57, began a nearly 13-year prison sentence in April after
being convicted on 12 counts of fraud and conspiracy last July. He was
incarcerated in a Southern California prison last month after losing a similar
effort to remain free on bail while appealing his conviction.

The verdict against Holmes came after a 46 days of trial testimony and other
evidence that cast a spotlight on a culture of greed and hubris that infected
Silicon Valley as technology became a more pervasive influence on society and
the economy during the past 20 years.

The trial’s most riveting moments unfolded when Holmes took the witness stand to
testify in her own defense.

Besides telling how she founded Theranos as a teenager after dropping out of
Stanford University in 2003, Holmes accused Balwani of abusing her emotionally
and sexually. She also asserted she never stopped believing Theranos would
revolutionize healthcare with a technology that she promised would be able to
scan for hundreds of diseases and other potential problems with just a few drops
of blood.

WE MAKE THE MARKETS MAKE SENSE

Understand how today’s global business practices, market dynamics, economic
policies and more impact you with real-time news and analysis from MarketWatch.

Subscribe Now: €2 Every 4 Weeks

While pursuing that audacious ambition, Holmes raised nearly $1 billion from a
list of well-heeled investors that included Oracle co-founder Larry Ellison and
media mogul Rupert Murdoch. Those sophisticated investors all lost their money
after a Wall Street Journal investigation and regulatory reviews exposed
dangerous flaws in Theranos’ technology.

In his restitution ruling, Davila determined that Holmes and Balwani should pay
Murdoch $125 million —- by far the most among the investors listed in his order.
The restitution also requires the co-conspirators in the Theranos scam to pay
$40 million in Walgreens, which became an investor in the startup after agreeing
to provide some of the flawed blood tests in its pharmacies in 2013. Another
$14.5 million is owed to Safeway, which has also agreed to be a Theranos
business partner before backing out.

In separate hearings, lawyers for Holmes and Balwani tried to persuade Davila
their respective clients should be required to pay little, if anything.
Prosecutors had been pushing for a restitution penalty in the $800 million
range. Both Holmes — whose stake in Theranos was once valued at $4.5 billion —
and Balwani — whose holdings were once valued around $500 million — have
indicated they are nearly broke after running up millions of dollar in legal
bills while proclaiming their innocence.

Holmes’s lawyers have been fighting her conviction on grounds of alleged
mistakes and misconduct that occurred during her trial. They have also contended
errors and abuses that biased the jury were so egregious that she should be
allowed to stay out of prison while the appeal unfolds — a request that has now
been rebuffed by both Davila and the Ninth Circuit Court of Appeals.

PARTNER CENTER

www.marketwatch.com Open in urlscan Pro 65.9.66.82 Public Scan

Form analysis 0 forms found in the DOM

Text Content

www.marketwatch.com Open in urlscan Pro
65.9.66.82 Public Scan

Form analysis
0 forms found in the DOM