Former Theranos CEO Elizabeth Holmes has lost her appeal to have her 2022 fraud conviction reconsidered by the 9th Circuit US Court of Appeals.

On May 8, 2025, the court denied her request for a rehearing before the original three-judge panel that upheld her conviction.

No judge on the circuit court called for a vote to have the full court review the case.

Holmes’ remaining option to challenge her conviction is to petition the U.S. Supreme Court.

Holmes was sentenced to 11 years and 3 months in prison in January 2023 after being convicted on four counts of wire fraud in January 2022.

The charges were related to her role as CEO of the now-defunct health technology company, Theranos.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ A rare case of Silicon Valley CEO accountability sets precedent

Holmes’ conviction and failed appeal represent a significant departure from Silicon Valley’s historical pattern of limited accountability for executive misconduct.

She is the first CEO of a major technology company to be criminally prosecuted and sentenced for fraud, marking an unusual moment of legal accountability in the tech industry 1.

This case stands in stark contrast to previous tech scandals where executives often faced civil penalties or were forced to resign but rarely served prison time for misleading statements.

The substantial 11-year sentence reflects the gravity of defrauding investors out of approximately $121 million and signals a potential shift in how seriously the justice system views tech executive misconduct 1.

The conviction has prompted increased scrutiny of startup claims, particularly in regulated industries like healthcare, with experts noting that Holmes’ case may deter future entrepreneurs from similar practices 2.

However, many industry watchers remain skeptical about lasting cultural change, with Richard Greenfield, a lawyer representing startup investors, noting that competitive pressures to attract investment may continue driving exaggeration 3.

2️⃣ Theranos aftermath reshapes biotech investment landscape