US: Theranos founder Elizabeth Holmes sentenced to 11 years in prison
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The founder of Theranos, Elizabeth Holmes, has been given a prison sentence of more than 11 years for her role in what has been dubbed as one of the “most substantial” white collar crimes in US history.
Ms Holmes had falsely claimed that the technology designed by her start-up company could diagnose disease with just a few drops of blood.
She founded Theranos at the age of 19, after dropping out of Stanford. The firm’s value rose after Ms Holmes claimed it could revolutionise drug diagnosis but the technology did not work and the firm, which was flooded with lawsuits, was dissolved in 2018.
Federal prosecutors from the Department of Justice had sought a 15-year prison sentence and $800 million (£677m) in restitution, saying Ms Holmes was was “blinded” by ambition. Ms Holmes’ lawyers requested a sentence of 18 months under house arrest plus community service.
Ms Holmes, 38, addressed the court on Friday and said she was “devastated” by her failings and that Theranos was her “life’s work”.
The final restitution to 10 defrauded investors, among whom is Rupert Murdoch, is to be decided at a future hearing. Judge Davila placed the money lost at around $121m (£102m), but this is not final, The Financial Times reports.
The maximum sentence Ms Holmes could have been handed was 20 years.
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