Challenges Faced by Elizabeth Holmes: Obstacles and Turning Points
Resilience and perseverance in the journey of Elizabeth Holmes. A timeline of obstacles and growth.
Elizabeth Holmes is an American entrepreneur and the founder of Theranos, a blood-testing company that falsely claimed to have revolutionized blood testing with innovative methods using minimal blood. Theranos's valuation reached $9 billion, making Holmes the youngest self-made female billionaire in 2015, according to Forbes. However, investigations revealed the company's technology was fraudulent, leading to a drastic revision of Holmes's net worth to zero and tarnishing her reputation. She was subsequently convicted of fraud for her role in the Theranos scandal.
October 5, 2003: Holmes alleged sexual assault
On the evening of October 5, 2003, Elizabeth Holmes called the police and alleged she had been sexually assaulted at a fraternity house at Stanford that morning.
2003: Holmes Reports Being Raped at Stanford
In 2003, Elizabeth Holmes reported that she was raped while at Stanford University.
2014: Theranos Falsely Claimed 100 Million Revenue
In 2014, Theranos falsely claimed to have a $100-million revenue stream when the company only made $100,000.
October 2015: Journal Publishes Article Detailing Inaccurate Results
In October 2015, the Wall Street Journal published John Carreyrou's article detailing how the Edison device gave inaccurate results, and revealing that Theranos was using commercially available machines.
2015: Doubts About Theranos' Claims Emerge
In 2015, journalistic and regulatory investigations began to reveal doubts about Theranos's claims and whether Elizabeth Holmes misled investors and the government.
January 2016: CMS Sends Warning Letter to Theranos
In January 2016, the Centers for Medicare and Medicaid Services (CMS) sent a warning letter to Theranos after an inspection uncovered irregularities in its Newark, California, laboratory.
March 2016: CMS Proposes Ban on Holmes Owning Clinical Lab
In March 2016, CMS regulators proposed a two-year ban on Elizabeth Holmes from owning or operating a certified clinical laboratory.
June 2016: Holmes's stake in Theranos essentially worthless
In June 2016, Forbes released an updated valuation of $800 million for Theranos, which made Elizabeth Holmes's stake essentially worthless, because other investors owned preferred shares.
July 2016: CMS Bans Holmes from Blood-Testing Services
In July 2016, CMS banned Elizabeth Holmes from owning, operating, or directing a blood-testing service for two years. Walgreens ended its relationship with Theranos, and the FDA ordered the company to cease use of its Nanotainer device.
October 2016: Theranos Dismisses 340 Employees
In October 2016, Theranos dismissed 340 employees.
2016: Fortune names Holmes a disappointing leader
In 2016, Fortune named Elizabeth Holmes in its article on "The World's 19 Most Disappointing Leaders".
January 2017: Theranos Dismisses 155 Employees
In January 2017, Theranos dismissed an additional 155 employees.
April 2017: Theranos Settles Arizona Lawsuit
In April 2017, Theranos settled a lawsuit with the State of Arizona, agreeing to refund the cost of blood tests to consumers and pay civil fines and attorney fees.
May 16, 2017: Theranos Shareholders Reach Agreement
On May 16, 2017, approximately 99 percent of Theranos shareholders reached an agreement with the company to dismiss all litigation and potential litigation in exchange for shares of preferred stock.
March 14, 2018: Holmes Settles SEC Lawsuit
On March 14, 2018, Elizabeth Holmes settled the SEC lawsuit by surrendering voting control of Theranos, returning shares, accepting a ban from holding an officer position, and paying a fine.
March 2018: SEC Charges Holmes and Balwani with Fraud
In March 2018, the SEC charged Elizabeth Holmes and Ramesh Balwani with fraud for raising over $700 million from investors while advertising a false product.
April 2018: Theranos Announces Layoffs of 105 Employees
In April 2018, Theranos announced plans to lay off 105 employees, leaving it with fewer than two dozen employees.
June 15, 2018: Holmes and Balwani Indicted on Fraud Charges
On June 15, 2018, Elizabeth Holmes and Sunny Balwani were indicted on multiple counts of wire fraud and conspiracy to commit wire fraud. Holmes resigned as CEO of Theranos but remained chairwoman.
June 2018: Holmes Indicted on Fraud Charges
In June 2018, a federal grand jury indicted Elizabeth Holmes and Sunny Balwani on fraud charges related to Theranos.
August 2018: Theranos Lays Off Remaining Employees
In August 2018, most of the remaining Theranos employees were laid off.
September 5, 2018: Theranos Announces Dissolution
On September 5, 2018, Theranos announced that it had begun the process of formally dissolving and liquidating its remaining assets.
2018: Carreyrou Publishes "Bad Blood"
In 2018, John Carreyrou published "Bad Blood: Secrets and Lies in a Silicon Valley Startup", detailing his investigation of Theranos and Elizabeth Holmes.
2018: SEC Charges Holmes with Fraud
In 2018, the SEC charged Elizabeth Holmes with raising $700 million from investors through fraud. She settled by paying a $500,000 fine and relinquishing control of Theranos.
August 31, 2021: Holmes's Trial Begins
On August 31, 2021, Elizabeth Holmes's trial began in the U.S. District Court for the Northern District of California, after delays due to the COVID-19 pandemic and her pregnancy.
November 29, 2021: Holmes testifies about rape and abuse
On November 29, 2021, Elizabeth Holmes testified that she had been raped at Stanford and that Sunny Balwani was controlling and abusive during their relationship, allegations Balwani denied.
January 3, 2022: Holmes Found Guilty of Defrauding Investors
On January 3, 2022, Elizabeth Holmes was found guilty on four counts of defrauding investors. A mistrial was declared on other counts, which were later dismissed.
January 2022: Holmes Convicted of Defrauding Investors
In January 2022, Elizabeth Holmes was convicted of defrauding investors in the case of U.S. v. Holmes, et al., but acquitted of defrauding patients.
January 2022: NPR obtained police report
In January 2022, NPR obtained a copy of a partial police report from October 5, 2003, regarding Elizabeth Holmes's allegation of sexual assault.
November 18, 2022: Holmes sentenced to federal prison
On November 18, 2022, Elizabeth Holmes was sentenced to 11+1⁄4 years in federal prison. She and Balwani were ordered jointly to pay $452 million in restitution to the victims of the fraud.
February 2023: Accusations of pregnancy as a delay tactic
In February 2023, Elizabeth Holmes was accused of conceiving a second child as a strategy for delaying the start of her prison term; she denied this.
May 17, 2023: Holmes ordered to surrender to custody
On May 17, 2023, Davila ruled that Elizabeth Holmes must surrender to custody on May 30, after accepting that she needed time to arrange childcare for her two children.
May 30, 2023: Holmes Begins Prison Sentence
On May 30, 2023, Elizabeth Holmes began serving her 11+1⁄4-year sentence at Federal Prison Camp, Bryan.
July 2023: Holmes's projected release date
In July 2023, the Bureau of Prisons projected that Elizabeth Holmes would be released from prison in 2032, approximately two years early, in accordance with the Bureau's guidelines for good conduct time.
June 2024: Ninth Circuit hears oral argument in Holmes's appeal
In June 2024, the Ninth Circuit heard oral argument in Elizabeth Holmes's appeal of her conviction and sentence.
February 2025: Court upholds Holmes's conviction
In February 2025, the U.S. Court of Appeals for the Ninth Circuit upheld Elizabeth Holmes's conviction.
