In brief
On 3 January 2022, a federal jury for the US District Court for the Northern District of California found Holmes guilty in US v. Elizabeth Holmes, on four counts of fraud based on statements made to investors and business partners about Theranos’ proprietary blood testing devices, their capabilities and uses in the market.
Throughout her trial, the jury heard testimony regarding Holmes’ and Theranos’ efforts to silo employees and limit the visibility of outside investors — all in the name of protecting the company’s valuable trade secrets.
But, while Theranos claimed that its privacy measures were in line with some of the most revered startups to come out of Silicon Valley, Holmes’ trial revealed that much of this secrecy was simply a measure of deceit designed to cover up failed — and phantom — technology and deteriorating business strategy.
In this Expert Analysis, published by Law360, Bradford Newman, Sara Pitt and Kelton Basirico explore the trade secrets aspects of this case.
