By Jody Godoy
(Reuters) – Theranos founder Elizabeth Holmes and former CEO Ramesh “Sunshine” Balwani were ordered on Tuesday Paying 25 million to victims of blood-testing startup fraud, the appeals court also denied Holmes’ request to stay out of jail while she challenges her conviction.
Holmes, who shot to fame for claiming that Theranos’ tiny machine could perform a battery of diagnostic tests with just a few drops of blood, was convicted last year of misrepresenting the start-up’s technology and finances. She was sentenced to years and three months’ imprisonment.
Holmes and Balwani are equally liable for the entire amount as Holmes and Balwani also oversaw Holmes’ trial and sentencing pursuant to an indemnity order from Judge Edward Davila in San Jose, California .
Davila refuted their contention that the intervention event resulted in losses for Theranos investors.
“The victims’ losses occurred the moment they exchanged their money for Theranos stock,” the judge said. 25, two days before she reported to the prison.
The court rejected her argument that the appeal could lead to a new trial, the threshold for her bail. Tuesday’s denial of bail means Davila will now set a new jail date for her. time. On appeal, Holmes challenged several of the judge’s rulings, including that he allowed evidence about the accuracy of Theranos tests to come after her statement to investors.
Balwani was convicted in separate trial of defrauding Theranos investors and patients and sentenced to 25 years and 12 months imprisonment. He began serving his sentence in April 12 after Davila and the 9th Circuit denied his request to remain on bail pending appeal.
Forbes called Sherlock Holmes the 25 world’s youngest self-made female billionaire when she was 25 , her stake in Theranos is worth $4.5 billion. Theranos, once valued at $9 billion, collapsed after a series of articles in The Wall Street Journal questioned its technology.