A California judge on Tuesday refused to dismiss the criminal charges against Theranos founder Elizabeth Holmes and her former executive ex-boyfriend Ramesh Balwani.
Holmes, 36, and Balwani are accused of falsely claiming the company’s machines could perform breakthrough blood tests with a single drop of blood, duping investors out of millions and misleading doctors and patients.
In July, the grand jury returned new indictments that clarified the alleged crimes committed by Holmes and Balwani.
But lawyers for the pair had argued that prosecutors had taken too long to file the new indictments and some of the alleged misconduct was too old, according to the Wall Street Journal. The defense also said the indictments didn't provide enough explanation of the charges.
Prosecutors have said that the allegations were clear from the initial charges, which 'described the type of misrepresentations, half-truths and omissions made to investors to perpetuate the fraud'.
After listening to the arguments on Tuesday, US District Judge Edward J. Davila said the new indictments had clarified issues with the previous charges and denied the dismissal of charges.
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A California judge on Tuesday refused to dismiss the criminal charges against Theranos founder Elizabeth Holmes (pictured arriving to court in January) and her former executive ex-boyfriend Ramesh Balwani
Holmes and ex-Theranos president Balwani are accused of falsely claiming the company’s machines could perform breakthrough blood tests with a single drop of blood, duping investors out of millions and misleading doctors and patients
She is set to go to trial March 9 after it was pushed back due to the coronavirus pandemic. Balwani will face trial separately and at a later date.
Holmes, a Stanford University drop out, launched her Palo Alto blood-testing start up in 2003 when she was 19 years old.
A notoriously secretive company, Theranos shared very little about its blood-testing machine with the public or medical community.
Holmes said she was inspired to start the company in response to her fear of needles.
Theranos became a big name in Silicon Valley led with Holmes, a Steve Jobs-obsessed leader who wore black turtlenecks everyday like her Apple idol.
She attracted investors and venture capital firms and the company was valued at $9billion before crashing to the ground in 2015.
But an investigation by The Wall Street Journal in 2015 found that Theranos’ technology was inaccurate at best, and that the company was using routine blood-testing equipment for the vast majority of its tests.
The story raised concerns about the accuracy of Theranos’ blood testing technology, which put patients at risk of having conditions either misdiagnosed or ignored.
Holmes (pictured), a Stanford University drop out, launched her Palo Alto blood-testing start up in 2003. She and Balwani are accused of scamming investors out of more than $700million