(CNN)Four years after the head two Theranos executives, Elizabeth Holmes and Ramesh “Sunny” Balwani, were first indicted collectively on a dozen federal fraud costs stemming from their time heading up the failed blood testing startup, both had been convicted by juries.
Holmes, the founder and ancient CEO of Theranos, was came across responsible on four out of 11 federal fraud and conspiracy costs in January after a months-long trial. Balwani, Theranos’ ancient president and COO who was also Holmes’ stay-in boyfriend at the time, was came across responsible on Thursday of ten counts of federal wire fraud and two counts of conspiracy to commit wire fraud.
Their trials marked the final chapter for Theranos, a startup once valued at $9 billion and lauded for its promise to upend the healthcare alternate. Theranos claimed its skills would possibly perhaps well well precisely and efficiently take a look at for stipulations like most cancers and diabetes with correct a pair of drops of blood. With that promise, it attracted $945 million in financing, a board of infamous political figures and famend retail partners.
Then came a Wall Avenue Journal investigation into the firm, which called into inquire the firm’s testing suggestions and the capabilities of its skills. In 2018, Holmes and Balwani were every charged with a dozen counts of wire fraud and conspiracy to commit wire fraud. Every pleaded no longer responsible.
Their trials were separated after Holmes indicated she would pursue a defense that incorporated alleging she was the sufferer of a decade-long abusive relationship with Balwani that impacted every piece of her lifestyles. (Balwani’s correct crew has strongly denied the allegations in courtroom filings.)
Here are the highlights of the upward push and drop of Theranos.
March 2004: Holmes drops out of Stanford to pursue Theranos
Holmes, a Stanford University sophomore studying chemical engineering, drops out of faculty to pursue her startup, Theranos, which she basically based in 2003 at age 19. The name is a combination of the phrases “therapy” and “diagnosis.”
September 2009: Ramesh “Sunny” Balwani joins Theranos
Balwani guarantees a $10 million loan to Theranos and presently after takes on a formal feature at the startup. Balwani, roughly 20 years older than Holmes, first met her in 2002 by a program in Beijing to learn Mandarin. Balwani had enjoyed a a hit profession in the procedure alternate, and following the sale of his e-commerce startup, was pursuing an MBA.
The two kept in touch and began residing collectively in 2005, Holmes testified for the period of her legal trial. Their non-public relationship was largely concealed from workers, patrons and industry partners. Balwani would in a roundabout method change into the firm’s chief working officer and president of the startup.
September 2013: Holmes opens up about Theranos; proclaims Walgreens partnership
A decade after first starting up the firm, Holmes takes the lid off Theranos and courts media consideration the identical month that Theranos and Walgreens snarl they’ve struck up a protracted-timeframe partnership. The first Theranos Wellness Center predicament opens in a Walgreens in Palo Alto the build patrons can salvage entry to Theranos’ blood take a look at.
The well-liked concept had been to dangle Theranos’ testing readily obtainable at Walgreens areas nationwide.
September 2014: Holmes named one of the most richest ladies in The united states by Forbes
Holmes is named to the magazine’s American billionaire list with the outlet reporting she owns a 50% stake in the startup, pinning her non-public wealth at $4.5 billion.
December 2014: Theranos has raised $400 million
Theranos has raised more than $400 million, in step with a profile of the firm and Holmes by The New Yorker. It counts Oracle’s Larry Ellison among its patrons.
July 2015: Theranos gets FDA reputation of Herpes take a look at
The FDA clears Theranos to exhaust of its proprietary tiny blood-assortment vials to finger stick blood take a look at for herpes simplex 1 virus — its first and entirely reputation of a diagnostic take a look at.
October 2015: Theranos is the topic of a Wall Avenue Journal investigation; Holmes hits merit
The Wall Avenue Journal reports Theranos is the exhaust of its proprietary formulation on entirely a minute choice of the 240 checks it performs, and that the overwhelming majority of its checks are done with ragged vials of blood drawn from the arm, no longer the “few drops” taken by a finger sever. In response, Theranos defends its testing practices, calling the Journal’s reporting “factually and scientifically spurious.”
A day later, Theranos halts the usage of its blood-assortment vials for all however the herpes take a look at due to pressures from the FDA. (Later that month, the FDA released two carefully redacted reports citing 14 issues, at the side of calling the firm’s proprietary vial an “uncleared clinical tool.”)
One week after the Journal grunt, Holmes is interviewed on-stage at the outlet’s conference in Laguna Sea glide. “We know what we’re doing and we’re more than happy with it,” she says.
Amid the criticism, Theranos reportedly shakes up its board of directors, striking off Henry Kissinger and George Shultz as directors whereas transferring them to a brand contemporary board of counselors; the firm also kinds a separate clinical board.
November 2015: Theranos and Safeway partnership falls immediate
Safeway, which invested $350 million into building out clinics in hundreds of its supermarkets to in a roundabout method offer Theranos blood checks, reportedly appears to be like to be to dissolve its relationship with the firm before it ever supplied its services.
January 2016: Federal regulators salvage field with Theranos’ California lab; Walgreens pulls merit
Providers for Medicare and Medicaid Providers (CMS) sends Theranos a letter announcing its California lab has did no longer comply with federal standards and that sufferers are in “rapid jeopardy.” It presents the firm 10 days to take care of the disorders.
In response, Walgreens says this would possibly perhaps no longer ship any lab checks to Theranos’ California lab for diagnosis and suspends Theranos services at its Palo Alto Walgreens predicament.
March 2016: CMS threatens to ban Holmes, Balwani from lab industry
CMS threatens to ban Holmes and Balwani from the laboratory industry for two years after the firm allegedly did no longer repair issues at its California lab. Theranos says that’s a “worst case scenario.”
Could presumably well 2016: Balwani steps down; Theranos voids two years of blood checks
Balwani departs. The firm also adds three contemporary board members as piece of the restructuring: Fabrizio Bonanni, a ancient executive vice president of biotech firm Amgen, ancient CDC director William Foege, and ancient Wells Fargo CEO Richard Kovacevich.
Theranos voids two years of blood take a look at outcomes from its proprietary testing units, correcting tens of thousands of blood-take a look at reports, the Journal reports.
June 2016: Holmes ranking worth revised to $0; Theranos loses its biggest retail accomplice
Forbes revises its estimate of Holmes’ ranking worth from $4.5 billion to $0. The magazine also lowers its valuation for the firm from $9 billion to $800 million.
Walgreens, once Theranos’ biggest retail accomplice, ends its partnership with the firm and says it will discontinuance all 40 Theranos Wellness Providers.
July 2016: Holmes is banned from running labs for two years
CMS revokes Theranos’ license to feature its California lab and bans Holmes from running a blood-testing lab for two years.
August 2016: The firm unveils ‘miniLab’ tool
Holmes tries to switch past present setbacks by unveiling a mini testing laboratory, called miniLab, at a conference for the American Affiliation for Clinical Chemistry. In selling the tool, versus working its possess clinics, Theranos seeks to successfully aspect-step CMS sanctions, which form no longer restrict analysis and pattern.
October 2016: Theranos investor sues the firm; Theranos downsizes
Theranos investor Accomplice Fund Administration sues the firm for $96.1 million, the amount it sunk into the firm in February 2014, plus damages. It accuses the firm of securities fraud. Theranos and Accomplice Fund Administration settled in Could presumably well, 2017, for an undisclosed quantity.
The firm also lays off 340 workers as it closes scientific labs and wellness centers as it makes an strive to pivot and focal point on the miniLab.
November 2016: Walgreens sues Theranos
Walgreens sues the blood testing startup for breach of contract. Walgreens sought to salvage better the $140 million it poured into the firm. The lawsuit was settled August, 2017.
January 2017: Extra layoffs, followed by a failed lab inspection
Theranos downsizes its group of workers once more following the elevated scrutiny into its operations, laying off roughly 155 workers or about 41% of staffers.
The Wall Avenue Journal reports that Theranos failed a 2nd regulatory lab inspection in September, and that the firm was closing its final blood testing predicament consequently.
April 2017: Theranos settles with CMS, and Arizona AG
Theranos settles with the CMS, agreeing to pay $30,000 and to no longer to possess or feature any scientific labs for two years.
Theranos also settles with the Arizona Licensed skilled Regular Designate Brnovich over allegations that its classified ads misrepresented the methodology, accuracy, and reliability of its blood testing and that the firm was out of compliance with federal guidelines governing scientific lab testing. Theranos agrees to pay $4.65 million merit to its Arizona potentialities as piece of a settlement deal.
March 2018: Holmes and Balwani charged with massive fraud
The SEC costs Holmes and Balwani with a “massive fraud” animated more than $700 million from patrons by an “account for, years-long fraud by which they exaggerated or made fallacious statements regarding the firm’s skills, industry, and financial performance.”
The SEC alleges Holmes and Balwani knew that Theranos’ proprietary analyzer would possibly perhaps well well develop entirely 12 of the 200 checks it published on its patient testing menu.
Theranos and Holmes conform to unravel the claims against them, and Holmes presents up adjust of the firm and a ways of her stake in it. Balwani, nonetheless, is combating the costs, along with his attorney announcing he “precisely represented Theranos to patrons to the entirely of his skill.”
Could presumably well 2018: “Spoiled Blood”
Reporter John Carreyrou, who first broke commence the story of Theranos for the Wall Avenue Journal, publishes “Spoiled Blood,” a definitive learn about at what took place interior the disgraced firm. Director Adam McKay (who directed “The Colossal Quick”) secures the rights to dangle the movie, starring Jennifer Lawrence as Holmes, by the identical name.
June 2018: Holmes and Balwani indicted on legal fraud costs
Holmes and Balwani are indicted on federal wire fraud costs over allegedly participating in a multi-million dollar scheme to defraud patrons, besides as a scheme to defraud clinical doctors and sufferers. Every possess pleaded no longer responsible.
Minutes before the costs were made public, Theranos introduced that Holmes has stepped down as CEO. The firm’s total counsel, David Taylor, takes over as CEO. Holmes stays chair of the firm’s board.
September 2018: Theranos to dissolve
Taylor emails shareholders that Theranos will dissolve, in step with a grunt from The Wall Avenue Journal. Taylor talked about more than 80 probably patrons were no longer in a sale. “We are now out of time,” Taylor wrote.
March 2019: Theranos gets the documentary treatment
Alex Gibney, the prolific documentary filmmaker in the advantage of “Dirty Money,” “Enron: The Smartest Guys in the Room,” and “The Armstrong Lie,” debuts “The Inventor” on HBO, following the upward push and drop of Theranos.
September 2020: Holmes’ probably defense technique comes to gentle
A brand contemporary courtroom doc finds Holmes would possibly perhaps well simply learn a pair of “psychological illness” defense in her legal fraud trial. Later, in August 2021, unsealed courtroom documents present Holmes is probably going to claim she was the sufferer of a decade-long abusive relationship with Balwani. (Balwani’s correct crew strongly denied the claims in courtroom filings.) The allegations ended in the severing of their trials. His trial is slated to commence in 2022.
December 2020: Holmes’ legal trial delayed til 2021
March 2021: Holmes’ pregnancy extra delays trial
News surfaces that Holmes’ is anticipating her first puny one, once again extra delaying her legal trial. Holmes’ counsel suggested the US govt that Holmes is due in July 2021, a courtroom doc revealed. She gave starting up in July.
August 2021: Holmes’ legal trial begins with jury choice
Extra than 80 probably jurors are brought into a San Jose courtroom for questioning over the direction of two days to search out out in the event that they are match to learn as fair, lovely jurors for the legal trial of Holmes. A jury of seven men and five ladies is chosen, with five decisions.
January 2022: Holmes came across responsible on four of 11 federal costs
Holmes is came across responsible of 1 rely of conspiracy to defraud patrons besides as three wire fraud counts tied to explicit patrons. She is came across no longer responsible on three extra costs relating to defrauding sufferers and one charge of conspiracy to defraud sufferers. The jury returns no verdict on three of the costs relating to defrauding patrons. Holmes faces as a lot as 20 years in penal complex besides as a beautiful of $250,000 plus restitution for every rely.
Holmes’s sentencing date is decided for leisurely September to permit for the completion of Balwani’s trial. Within the period in-between, Holmes stays free on a $500,000 bond secured by property.
March 2022: After Hulu miniseries debuts, Balwani’s legal trial kicks off
“The Dropout,” a scripted miniseries about Theranos produced by ABC, debuts on Hulu. Amanda Seyfried stars as Holmes and Naveen Andrews plays Balwani. Their romantic and skilled relationship facets prominently in the present.
Following delays due to Holmes’ prolonged trial then a surge of Covid-19, jury choice for Balwani’s trial gets underway. On March 22, opening arguments are held and the govts first witness, a ancient Theranos employee became whistleblower, is called to the stand.
July 2022: Balwani responsible of federal fraud
After four plump days of deliberations, a jury finds Balwani responsible of ten counts of federal wire fraud and two counts of conspiracy to commit wire fraud. Love Holmes, Balwani faces as a lot as 20 years in penal complex besides as a beautiful of $250,000 plus restitution for every rely of wire fraud and every conspiracy rely.