Jurors that Holmes defrauded investors for years while running the company, and she was convicted on 4 of 11 charges. Theranos, which shut in 2018, promised technology that would make it much easier and cheaper test blood.
She was not convicted on charges directly related to marketing, but was nabbed for consistently providing false claims related to the firm’s technology. Those charges include three fraud and one conspiracy to defraud charges.
At issue were Holmes’ claims the military was using the technology and it was on track to pull in $1B a year.
Stan Fiorito, an ad executive at a firm that worked with Theranos, provided some insights into the impact of the verdict. In an interview, he said “the lesson there is, ‘Where’s the product and the product testing? Where is the due diligence on viability in terms of distribution, scale, peer review, and then medical review from the likes of the FDA?’ Those things weren’t met, and I’m not even talking about the investor due diligence.”
