Elizabeth Holmes defrauded investors
Photo: David Odisho/Getty Images

Elizabeth Holmes defrauded investors

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Good morning! This Tuesday, the jury reached a verdict in the Theranos trial and Apple crossed the $3 trillion mark. I’m Biz Carson, and here’s a fun fact: I almost got my blood tested by a Theranos machine once. Good thing I didn’t!

It’s over

2022 has barely even started, and you can already mark off one spot on your bingo card: Yesterday, a jury of eight men and four women delivered a verdict in the Elizabeth Holmes fraud trial.

Elizabeth Holmes was found guilty of defrauding investors. The jury convicted Holmes on three counts related to defrauding PFM's Brian Grossman, the DeVos family and attorney Dan Mosley. It also found her guilty of conspiracy to commit investor fraud.

But Holmes was found not guilty when it came to defrauding patients. The jury acquitted Holmes on all of the patient-related charges.

  • That includes conspiracy to defraud patients and wire fraud for buying over $1 million in ads in Arizona for its services.
  • One of the patients had received faulty HIV test results, and another had received incorrect prostate cancer results, but Holmes was found not guilty on both counts.

The jury was deadlocked on a few counts. In a bit of Monday morning drama, the jury told the judge it was unable to reach a unanimous verdict on those counts. After being instructed to deliberate further, the jury said it really couldn’t make up its mind.

  • The three counts ended up being related to three other investor charges, and the judge declared a mistrial on those counts only.
  • That makes the end total four guilty, four not guilty and three counts unaccounted for.

So what comes next? I, for one, am excited to no longer make the drive to San Jose in the dark of the night to wait in line.

  • Holmes will be sentenced, which probably won’t happen for at least a month. She’s likely to face up to 20 years in prison, but she wasn’t taken into custody; she’s out on bail for now.
  • The DOJ will have to decide whether it wants to retry the three counts that the jury couldn’t reach a verdict on.
  • There’s also the trial of Sunny Balwani, Theranos’ former COO and president, which is scheduled to start soon.

Still, don’t expect this to be some Silicon Valley wake-up call. As I’ve written about before, if there are lessons to be learned here, they’ve already been learned. But once we find out how much jail time is attached, we’ll know at what cost.

— Biz Carson (email | twitter)

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Sen. Rand Paul is leaving YouTube because he thinks “they’re the worst censors”:

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Twitter users are going off on Matt Damon’s appearance in a Crypto.com ad:

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What tech litigation is happening in 2022? There’s the ongoing fight between Apple and Epic, the FTC’s brawl with Facebook and more on the horizon. Protocol broke down all the lawsuits to look out for this year.

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Michael Pryor, co-founder of Trello (now a part of Atlassian), explains what he's learned along the way and his advice for other companies that are looking to build a truly collaborative culture that keeps employees feeling connected — from wherever they choose to work.

Learn more

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