Theranos founder Holmes loses bid to stay out of prison

Theranos founder Elizabeth Holmes and former CEO Ramesh “Sunny” Balwani were on Tuesday ordered to pay $452 million to victims of the blood-testing startup’s fraud, and an appeals court also denied Holmes’ request to remain out of prison while challenging her conviction.
Holmes, who rose to fame after claiming Theranos’ small machines could run an array of diagnostic tests with just a few drops of blood, was convicted last year of misrepresenting the startup’s technology and finances. She was sentenced to 11 years and three months in prison.
Under the restitution order made by Judge Edward Davila in San Jose, California, who also oversaw Holmes’ trial and sentencing, both Holmes and Balwani are equally responsible for the full amount.
Davila rejected their argument that intervening events contributed to Theranos investors’ losses.