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Theranos founder Elizabeth Holmes fails in bid to stay out of prison during appeal

Holmes has to serve her sentence while appealing her case.


Theranos founder Elizabeth Holmes has failed to convince the court to let her stay out of prison while she's appealing her 11-year sentence. According to The Wall Street Journal, the US Court of Appeals for the Ninth Circuit said Holmes' appeal doesn't raise legal issues or questions that could impact the outcome of the case. Further, even if it does raise questions, they still wouldn't be enough to overturn her fraud conviction.

Holmes had asked the court to pause her sentence a couple of days before she was supposed to report to prison on April 27th, with her lawyers arguing that she wasn't a flight risk. The appeals court delayed her reporting date while it considered her request, but it has ultimately decided that she has to start serving her sentence. A district court that previously denied the same request from her camp recommended that she serve her time at a Bryan, Texas federal prison camp, which allows family visitations. The appeals court will now decide on a new reporting date for the former executive.

In addition to her request being denied, Holmes and former Theranos CEO Ramesh "Sunny" Balwani have also been ordered to pay $452 million in restitution to the blood startup's investors. If you'll recall, Theranos promised to revolutionize healthcare with a technology that could diagnose hundreds of diseases with just a few drops of blood. It soon came out, however, that its technology didn't work and that it was using traditional machines modified to use lesser amounts of blood to run its tests. Rupert Murdoch, executive chairman of News Corp, will get the biggest share at $125 milli. Meanwhile, Walgreens, which was once Theranos' biggest partner and even provided tests in its drugstores, is getting $40 million.