The judge dropped a number of charges against Elizabeth Holmes of Theranos – but she WILL be confronted with wire fraud
Judge drops a few charges against Theranos founder Elizabeth Holmes, but she and the former president of the company WILL be confronted with fraud cases of ‘misleading patients about the possibilities of the company’s blood tests
- Judge rejected Tuesday a few charges against Elizabeth Holmes, but charges for fraud are still against her and Theranos president Sunny Balwani
- They are accused of misleading patients about the possibilities of blood tests
- The court found that although they knew the tests were unable to produce consistently reliable results, they were not recommended by doctors
- The court ruled that since the tests were paid for by medical insurance companies, patients were not denied money or property
- However, a prosecutor claims that they have raised $ 700 million from investors due to a misrepresentation
- Their process starts in August
A federal judge dismissed a few charges against Theranos Inc founder Elizabeth Holmes and the former president of the company, Ramesh “Sunny” Balwani, on Tuesday, but the charges for fraud fraud still apply.
According to the 2018 indictment, Holmes and Balwani encouraged doctors and patients to use the company’s blood test services, even though they knew that Theranos was incapable of producing consistently accurate and reliable results for certain blood tests.
They were accused of misleading patients about the possibilities of her company’s blood tests and they did not plead guilty to nine counts of thread fraud and two counts of conspiracy to commit thread fraud.
Holmes, a drop-out from Stanford University, started Theranos at the age of 19 and questions were first asked about the accuracy and reliability of the company’s signature finger prick device in a series of articles in the 2015 Wall Street Journal .
A judge on Tuesday rejected some charges against Elizabeth Holmes (left in January), but charges for fraud fraud are still against her and former Theranos president Sunny Balwani (right in April 2019)
The California court found that although they knew the tests were unable to produce consistently reliable results, they were not recommended by doctors
In a court in San Jose, California, her lawyer had asked the judge to drop 11 counts against them, claiming that the government charges were ‘broad’ and that there was no evidence that people who had received inaccurate test results were harmed .
They said the finger prick blood test device has performed more than 100 tests and only eight have been identified as canceled.
“The charge is full of ambiguity and fudging language, the government is inserting these sentences so that they can shift their theory as they continue in the trial,” said Holmes’ lawyer, Amy Saharia, Monday district judge Edward Davila Monday.
They are accused of misleading patients about the possibilities of blood tests. But the court ruled that since the tests were paid for by medical insurance companies, patients were not denied any money or property
“Which alleged deviations should we prepare for?”
A prosecutor said there was evidence that Theranos received $ 700 million through misleading investors. The defense asked prosecutors to propose investors who would testify as victims of fraud.
‘The defense has been conducting a court case for 20 months. If they really did not understand the nature of the allegations, they would have raised this issue sooner, “assistant lawyer John Bostick replied.
“The most important evidence is statements from Holmes and Balwani himself.”
Bostick also noted that Theranos bragged about the US Food and Drug Administration.
“Evidence will show that patients have gone to Theranos to get accurate results. And when doctors sent patients to Theranos, this wasn’t for fun, this wasn’t something you do on a Saturday afternoon, “Bostick said.
“Theranos worked with Walgreens. Walgreens is not an entertainment location; it’s a place where people go for medical care. They knew they were misleading people by offering those tests. “
Holmes returned to court later Monday.
On Tuesday a court in California ruled that since the tests were paid for by their medical insurance companies, the patients were not deprived of money or property when taking blood tests from Theranos.
It was also said that there was no evidence to show that they instructed doctors to misrepresent their patients.
However, the federal court refused to reject the accusation of wire fraud and the trial begins in six months.