Holmes and Balwani’s appeal falls flat as court upholds fraud convictions

Elizabeth Holmes and Ramesh “Sunny” Balwani’s appeal to overturn their fraud convictions and reduce their prison sentences was denied Monday by the Northern District Court of California, which also refused to soften their $452 million joint restitution order. Holmes, the founder of Theranos, and Balwani, its former COO, were convicted in separate trials in 2022 for defrauding investors about the capabilities of Theranos’ blood-testing technology. Holmes was sentenced to more than 11 years in prison, and Balwani received nearly 13 years. Both began serving their sentences in 2023. In their appeal, the two argued that the district court allowed improper testimony from former Theranos employees who served as lay witnesses but wound up offering improper expert testimony without the necessary legal designation. The appeals panel agreed that some testimony crossed into expert territory but concluded the errors were harmless. Holmes also contested the inclusion of a damning government repo ... Read full article.