Elizabeth Holmes Fraud Trial Centers on Intent to Deceive Investors
The federal trial of former Theranos CEO Elizabeth Holmes hinges on whether she intentionally lied about her company's blood-testing technology to defraud investors. Holmes admits to making mistakes but claims she always believed the startup was on the verge of a breakthrough.
The high-profile trial of former Theranos CEO Elizabeth Holmes boils down to a single question of intent. Prosecutors charge that she intentionally covers up fatal defects in her blood-testing technology to rip off investors and endanger patients. The 37-year-old faces 11 felony counts of fraud and conspiracy related to the spectacular collapse of her startup.
Holmes famously claims that Theranos has a revolutionary method to test for hundreds of conditions using just a few drops of blood from a finger prick. However, evidence shows this supposed breakthrough is a mirage that dupes investors and misleads patients between 2010 and 2015. The trial focuses heavily on whether she knowingly spreads false information or simply makes honest business mistakes.
During her testimony, Holmes acknowledges making bad decisions but maintains she never stops believing Theranos is about to transform health care. She also points the finger at her former lover and top executive Sunny Balwani, insinuating that he manipulates and deceives her throughout the company's turbulent history.