A U.S. court has rejected Theranos founder Elizabeth Holmes’ appeal, meaning she’s expected to remain in jail until 2032.
Holmes was found guilty of fraud over claims she had created a device that could run a range of tests with a small amount of blood.
Theranos reached a market value of $US9 billion ($AU14 billion) at its peak.
Holmes, 41, unsuccessfully argued some of the prosecutor’s evidence was flawed and warranted her release.
Theranos
Holmes founded Theranos in 2003 as a 19-year-old. She produced a device she claimed could run multiple tests from a tiny amount of blood.
The company raised almost $US1 billion ($AU1.6 billion) from investors including business titans Rupert Murdoch and Larry Ellison.
In 2015, the Wall Street Journal investigated Theranos’ claims, finding the blood-testing technology was inaccurate and accusing Holmes of defrauding investors. The company collapsed in 2018.
Trial
Holmes and Theranos president Ramesh Balwani were found guilty in 2022 of fraudulent conduct.
The pair were found to have inflated the estimated value of Theranos to attract investors, by making false claims about their product’s effectiveness.
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Holmes was sentenced to 11 years in prison. Two years have since been removed for good behaviour.
The U.S. Prison Bureau shows she is due to be released in March 2032 from a Texas prison.
Appeal
Holmes appealed her sentence, alleging flaws in the prosecutors’ use of evidence.
In a legal filing, her lawyers also argued that “highly credentialed scientists” had told Holmes the blood-testing technology was effective.
Holmes also conducted her first interview from prison earlier this month with People magazine.
She maintained her innocence but admitted “there are things I would have done differently.”
Judge Jacqueline Nguyen dismissed Holmes’ appeal.
In her remarks, Nguyen upheld Holmes’ sentence, saying: “The grandiose achievements touted by Holmes and Balwani were half-truths and outright lies.”
“Pharmaceutical companies never validated the technology, as Holmes and Balwani had told investors,” Nguyen ruled.
“Contrary to the rosy revenue projections shared with investors and business partners, Theranos was running out of money.”
