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TechElizabeth Holmes

What people are saying about Theranos founder Elizabeth Holmes’ fraud conviction

By
Jonathan Vanian
Jonathan Vanian
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By
Jonathan Vanian
Jonathan Vanian
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January 3, 2022, 9:44 PM ET
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Theranos founder Elizabeth Holmes was convicted of criminal fraud on Monday, marking a dramatic fall from grace for the one-time Silicon Valley superstar.  

Holmes was once among the most admired tech CEOs for her blood-testing startup that garnered a $9 billion valuation from investors who believed the company’s technology would revolutionize healthcare. But jurors decided that Holmes was guilty on four counts of fraud and conspiracy, leaving the possibility that she could spend nearly two decades in prison.

Jurors found Holmes not guilty on four other felony charges, and they deadlocked on another three. 

Several high-profile people took to Twitter to comment on the trial’s outcome. 

Journalist John Carreyrou noted on Twitter how Holmes’ four guilty charges were related to defrauding investors rather than patients, who relied on the company’s blood tests even though executives knew they were faulty. Carreyrou’s reporting about Theranos for The Wall Street Journal was instrumental in publicly exposing the startup’s struggles with its blood-testing technology and the extent to which Holmes and fellow executives embellished the technology’s capabilities.

The 4 guilty counts are all investor counts. The investor conspiracy count and the counts relating to the hedge fund PFM, the ex Cravath attorney Mosley and the DeVos family.

— John Carreyrou (@JohnCarreyrou) January 4, 2022

Rasu Shrestha, the enterprise executive vice president and chief strategy and transformation officer for Atrium Health, called attention to the dangers of Theranos misleading people about its health diagnostic chops. 

GUILTY – of 4 charges, including conspiracy to commit fraud against investors

“The way #Theranos is operating is like trying to build a bus while you’re driving the bus. Someone is going to get killed.”

― @JohnCarreyrou, #BadBlood #ElizabethHolmes pic.twitter.com/cyn2w0RPWq

— Rasu Shrestha MD MBA (@RasuShrestha) January 4, 2022

Kyle Edmonds, an assistant professor of medicine and palliative medicine for the University of California at San Diego, complained about the jury failing to convict Holmes on the charges related to defrauding patients.

https://twitter.com/kpedmonds/status/1478166889343815683

Healthcare attorney Harry Nelson expressed dismay that it took several years for Holmes to eventually be found guilty. 

About time. The fraud at #Theranos was revealed over 5 years ago. Glad to see #ElizabethHolmes finally get what she deserves; just wish it had happened faster.https://t.co/Asg5iV15Mf

— Harry Nelson (@nelsonh) January 4, 2022

Tanya Ha, the engagement director for Australia’s Science in Public communications firm, compared Holmes’ trial to the conviction of Martin Shkreli, the controversial ‘Pharma Bro’ who was found guilty of investor fraud in 2017.

#ElizabethHolmes verdict brings to mind securities fraud conviction of ‘Pharma Bro’ Martin Shkreli who (among other things) raised the price of antiparasitic drug Daraprim from US$13.50 to $750 per pill.

It’s a system where you can screw over patients, but NOT rich investors. https://t.co/dldzAOO3de

— Tanya Ha 🌱 (@Ha_Tanya) January 4, 2022

Elizabeth Renieris, the director Notre Dame-IBM Technology Ethics Lab, pointed out that venture capitalist Tim Draper, who had invested in Theranos and then, after news of the company’s misdeeds emerged, accused the media of conspiring against Holmes, is still investing in tech.

#ElizabethHolmes verdict feels like a good time to remember that Tim Draper was as bullish on #Theranos as he is on #Bitcoin and #Web3 https://t.co/UN5TuI6FaP

— Elizabeth M. Renieris (is back to work, ltd on X) (@hackylawyER) January 4, 2022

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By Jonathan Vanian
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Jonathan Vanian is a former Fortune reporter. He covered business technology, cybersecurity, artificial intelligence, data privacy, and other topics.

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