Theranos founder and ex-CEO Elizabeth Holmes may claim “mental disease” as part of her defense for her investor fraud trial.
What We Know:
- Holmes was indicted on federal wire fraud charges by the U.S. Attorney for the Northern District of California in June 2018. Holmes and her biotech company Theranos allegedly operated a multi-million dollar scheme to defraud investors, doctors, and patients.
- Holmes’ lawyers have said that they intend to “introduce expert evidence relating to a mental disease or defect or any other mental condition of the defendant bearing on . . . the issue of guilt,” according to a filing by the defense. Holmes plans to center her defense using psychiatrist Dr. Mindy Mechanic of California State University.
- Following the defense’s plan, Judge Edward Davila has allowed federal prosecutors to have Holmes examined by a psychologist and psychiatrist. Holmes may be examined on video for two consecutive hours and for no more than 14 hours.
- Theranos was a private biotech firm that originally touted a breakthrough way to conduct blood tests. Holmes founded the company in 2003 when she was 19-years-old. The firm was valued at $10 billion in 2013. Theranos was exposed in 2015 for making exaggerated and scientifically unverified claims about its technology. The company faced a mountain of legal battles and shut down in 2018.
- Holmes and former Theranos COO Ramesh Balwani were also brought up on fraud charges by the SEC in March of 2018. Holmes settled the case by paying a fine and relinquishing all control of the company and her 19 million shares. She is also barred from an officer or director role at any public company for ten years.
Holmes’ trial was scheduled to start in August 2020 but has been delayed due to COVID-19. The trial is now slated for March 2021. Holmes faces up to 20 years in prison.
