A federal jury in the United States District Court for the Northern District of California found Elizabeth Holmes, the founder of Theranos, guilty of 4 of 11 counts of various conspiracy and fraud charges on Monday.
The jury deliberated for seven days over whether Holmes had committed fraud and conspiracy from promoting an analyzer that could run “accurate, fast, reliable, and cheap blood tests and test results” from a prick of the finger. Holmes gained financial backing through private investors between 2010 and 2015, including Rupert Murdoch, founder of multiple media outlets. The mogul invested millions, allowing Theranos to raise more than $900 million.
Forbes had estimated the company to be worth $4.5 billion in 2015, but concerns started to arise when the Wall Street Journal began reporting on in-house testing inaccuracies. Holmes pleaded not guilty to all counts of fraud and conspiracy to defraud patients and investors.
On the count of defrauding patients and conspiracy, the prosecution argued that Holmes mislead patients about the accuracy of the blood tests. Holmes was acquitted of these charges as there was insufficient statistical evidence to support any errors in the tests. Three of the 11 counts in which Holmes was acquitted were due to a failure to reach a verdict by the jury.
Over the course four-month investigation, prosecutors interviewed 29 witnesses in total. The prosecution indicated witness statements from lab directors showed that Holmes knew of the flaws in the technology but was instructed to downplay it, “choos[ing] fraud over business failure.” Nevertheless, Holmes insisted that she did not intend to deceive anyone, hoping that the blood test would “change the world.”
Holmes faces up to 80 years in prison and will be sentenced at a later date by US District Judge Edward Davila.