Theranos founder Elizabeth Holmes has been found guilty of defrauding investors following a lengthy trial in the United States.

Prosecutors in the US alleged that Holmes intentionally misled investors over the company’s technology and its ability to detect diseases through blood samples – claims which she has repeatedly denied.

Holmes faced a total of 11 charges, and was found guilty on four counts, including three counts of wire fraud and conspiracy to commit fraud against investors.

Jurors failed to reach a consensus on three of the 11 charges, but found Holmes not guilty on four charges which alleged she wilfully defrauded patients.

US Attorney Stephanie Hinds described the trial as a “complex case” and thanked jurors for reaching a verdict.

“The guilty verdicts…reflect Ms Holmes’ culpability in this large-scale investors fraud and she must now face sentencing for her crimes,” a statement read.

Landmark Trial

The months-long trial revealed shocking details on how Theranos, which at one point was valued at more than £6.5bn, claimed to offer a revolutionary blood testing for over 240 diseases, illnesses and ailments such as cancer.

Holmes founded the company after dropping out of Stanford University, and quickly rose to become one of the most celebrated female founders in tech history.

Theranos scaled rapidly, raising more than $900 million in funding from a host of investors such as media mogul Rupert Murdoch.

At one point, the Theranos board of directors featured an all-star list of high-profile figures, including Henry Kissinger, former US Secretary of State George Shultz and General James Mattis.

In 2015, Theranos began to falter after an investigation by the Wall Street Journal claimed the blood-testing technology did not work.

At the trial, former employees testified that Holmes had been made aware of significant flaws in the blood testing technology.

Notably, jurors heard that former lab directors were urged to downplay concerns while Holmes continued to promote the technology to investors.

Prosecutor Jeff Schenk argued that Holmes “chose fraud over business failure”.

“She chose to be dishonest with investors and patients,” he said. “That choice was not only callous, it was criminal.”

Testifying at the trial, Holmes repeatedly denied allegations that she purposefully defrauded patients, investors and the public. In particular, she claimed to have relied heavily on president and COO Ramesh “Sunny” Balwani and lab staff for accurate information on Theranos’ capabilities.

However, Holmes did acknowledge that mistakes had been made in how Theranos positioned and promoted its blood-testing technology.

She admitted that logos from Pfizer, GSK and Schering-Plough were added to company reports without consent, but argued that none of the pharmaceutical firms objected to their logos being used.

Holmes also revealed she tried to supress Wall Street Journal reports on trade secrets ground.

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A focal point for the defence centred around Balwani, who was both Holmes’ business partner and long-term boyfriend.

Holmes accused Balwani of emotional and sexual abuse at the trial, claims which he denies.

Following the verdict, Holmes was not taken into custody. A further hearing is scheduled for next week.

Each charge carries with it a maximum prison sentence of 20 years, sizeable fines or requirement to pay restitution.

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