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The trial of Elizabeth Holmes, founder and former chief executive of medical technology company Theranos, has begun in California.

She is pleading not guilty to perpetrating one of the biggest frauds in Silicon Valley history, “an elaborate, years-long fraud” as the US government alleges, and faces up to 20 years in prison.

Theranos itself, which she founded aged 19, has shut down after the unravelling of its claims to have invented a revolutionary finger-prick blood test.

Holmes is accused of knowing this test was unreliable and inaccurate and of hiding this information.

Former U.S. President Bill Clinton speaks with Jack Ma, executive chairman of Alibaba Group, and Elizabeth Holmes, CEO of Theranos, during the Clinton Global Initiative's annual meeting in New York
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Holmes shared the stage with Bill Clinton and Alibaba co-founder Jack Ma

The Downfall

By 2014 the company had announced a partnership with US pharmacy chain Walgreens, and Forbes was hailing Elizabeth Holmes as the world’s youngest self-made female billionaire.

Theranos reached its peak in September 2015 when the company was valued at $9bn (£7bn) and Holmes shared a stage with former president Bill Clinton and Chinese entrepreneur Jack Ma in a panel discussion about equality and opportunity.

But a month later, the Wall Street Journal published a front-page story that claimed the company’s blood testing technology was so flawed Theranos was actually using equipment made by other businesses to carry out tests in its laboratories.

The Journal reported that the company’s former chief scientist had taken his own life two years earlier after telling his wife the finger-prick technology did not work.

Theranos founder Elizabeth Holmes exits Robert F. Peckham U.S. Courthouse after the first day of federal court hearings in San Jose, California, U.S. May 4, 2021. REUTERS/Kate Munsch
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Holmes has pleaded not guilty to the charges

The Charges

Investigations by medical and financial regulators soon followed and in 2018 criminal charges were filed against Elizabeth Holmes and Romesh Balwani, her former boyfriend and the president and chief operating officer of Theranos, accusing them of fraud.

The pair were charged with engaging “in a multi-million-dollar scheme to defraud investors, and a separate scheme to defraud doctors and patients” and each face two counts of conspiracy to commit wire fraud and nine counts of wire fraud.

Theranos made misrepresentations to doctors and patients about the reliability of its tests, the Department of Justice alleged.

The executives were also accused of making misrepresentations to investors about the financial condition of the company, celebrating expected sales of over $1bn when they were actually bringing in just a few hundred thousand.

Former Theranos President and COO Ramesh "Sunny" Balwani smiles after a hearing at a federal court in San Jose. Pic: Reuters
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Theranos president Ramesh Balwani has also been charged with fraud – which he denies

The Trial

Lawyers for Holmes are expected to argue that she was working with an impaired mental state at the time of the fraud due to alleged sexual abuse and coercive behaviour by Ramesh Balwani.

Balwani’s lawyers have denied these claims.

His trial is set to take place next year after his lawyers sought to have him tried separately to avoid Holmes’ testimony prejudicing the jury. He too has pleaded not guilty.

According to an unsealed court document written by Balwani’s lawyers when seeking to have his case heard separately, she “plans to introduce evidence that Mr Balwani verbally disparaged her and withdrew ‘affection if she displeased him’; controlled what she ate, how she dressed, how much money she could spend, [and] who she could interact with”.

The jury selection process has been a challenge, with dozens already removed after confirming their familiarity with media coverage of the case, and with others now asked whether they have any experience of abusive relationships.

The main defence expected from Holmes’ lawyers is that Balwani’s controlling behaviour “erased her capacity to make decisions”, including in the case of knowingly defrauding investors, doctors and patients.

Former Theranos CEO Elizabeth Holmes arrives for a hearing at a federal court in San Jose. Pic: Reuters
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Holmes will be tried at a court in San Jose, California

What does it mean?

Both defendants previously reached a settlement with the Securities and Exchange Commission, relinquishing their shares in the company and paying a $500,000 (£360,000) penalty.

But their case is also emblematic of what is often seen as a culture of ‘fake-it-until-you-make-it’ among Silicon Valley startups, as Sky News business presenter Ian King writes.

Analysis by Ian King, business presenter

There are many lessons to be drawn from the Theranos affair, but perhaps the most worrying thing that has emerged is the culture of secrecy that existed in Theranos, a culture that was – and is – by no means unique in Silicon Valley.

John Carreyrou, the investigative journalist at the Journal whose stories exposed the scandal, has since written a book on the saga, Bad Blood, which highlights the weirdly cultish nature of the company.

Again, in this regard, Theranos was perhaps not so different from a number of other companies in the Valley.

Quite apart from the crushing losses for investors, this secrecy and cult-like nature had other real-world consequences, with many patients likely to have received erroneous blood test results.

There are many outstanding questions surrounding Theranos, not least the outcome of Ms Holmes and Mr Balwani’s forthcoming fraud trial, as well as whether the remaining patents being acquired by Fortress will turn out to have any lasting value.

The biggest of all, though, is whether there are other tech companies presently enjoying outlandish valuations that eventually turn out to be similarly flawed.

The chances must be that there are.

Jury selection has begun in the trial, which the court expects may continue into December.

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Sean ‘Diddy’ Combs denied bail after being convicted over prostitution-related offences

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Sean 'Diddy' Combs denied bail after being convicted over prostitution-related offences

Sean “Diddy” Combs has been found guilty of transportation for prostitution following a landmark trial in New York – but cleared of more serious charges of sex trafficking and racketeering conspiracy.

The hip-hop mogul was accused by prosecutors of abusing and coercing three alleged victims, including his former long-term partner, singer and model Cassie Ventura, and other crimes including kidnapping, arson and blackmail.

Jurors decided not all the allegations were proven – but Combs still faces several years in prison after being convicted of transporting people across the US, including Cassie and another former girlfriend “Jane”, and paying male escorts to engage in sexual encounters.

However, with the not guilty verdict on three other more serious charges – racketeering conspiracy and two of sex trafficking – the 55-year-old has avoided a maximum possible sentence of life behind bars.

Despite a request by his defence team, he was denied bail ahead of sentencing – which has been scheduled for Friday 3 October.

Sean "Diddy" Combs reacts after verdicts are read of the five counts against him, during Combs' sex trafficking trial in New York City, New
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Combs appeared upbeat in court as the verdict was announced. Pic: Jane Rosenberg/ Reuters

Marc Agnifilo, part of Diddy’s defence team, described the ruling as “a victory of all victories”.

Outside the courthouse, he said the jury “got the situation right, or certainly right enough”.

Another of his lawyers, Nicole Westmoreland, said: “He actually battled for his freedom, for his innocence, and he did it.

“And, you know, a lot of times, people are too afraid to do it. Today is a major win to show what the system can do.”

The mixed result from the jury came not long into their third day of deliberations. In the courtroom in Manhattan, there were cheers from Combs’s family – and the rapper himself held his hands up in a prayer motion, looking at the jury, and hugged his defence lawyer Teny Geragos.

His mood seemed very different to just a day earlier – when he learned the jury had reached a verdict on four of the five charges, but were split on the racketeering charge.

After deliberating for longer on Wednesday, they came to a unanimous decision.

As the verdict sunk in, Combs appeared overwhelmed, kneeling at his chair and bowing his head in prayer once again.

“I’ll be home soon,” he said as he faced his family members. “I love you, Mum.”

Sean "Diddy" Combs reacts after verdicts are read of the five counts against him, during Combs' sex trafficking trial in New York City, New
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Combs later seemed to become overwhelmed with relief. Pic: Jane Rosenberg/ Reuters

The application for bail

Combs’s defence team argued that as he had been cleared of the most serious charges, he should be bailed ahead of sentencing.

His lawyer Marc Agnifilo said he had been a model prisoner and added: “He’s not going to flee. He’s been given his life back.”

But prosecutor Maurene Comey argued Combs had a history of violence, which Judge Arub Subramanian agreed with. “At trial, the defence conceded the defendant’s violence in his personal relationships,” he said.

After being denied bail, Combs attempted get the judge’s attention – but after consulting with Mr Agnifilo, he did not speak.

Sean "Diddy" Combs watches as his former girlfriend Casandra "Cassie" Ventura is sworn in as a prosecution witness before U.S. District Judge Arun Subramanian at Combs' sex trafficking trial in New York City, New York, U.S., May 13, 2025 in this courtroom sketch. REUTERS/Jane
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Casandra ‘Cassie’ was heavily pregnant when she gave evidence at the start of the trial. Pic: Jane Rosenberg/ Reuters

Cassie ‘paved the way’

Reacting to the verdict, Cassie’s lawyer Douglas H Wigdor said that although jurors did not find Combs guilty of sex-trafficking Cassie, she had “paved the way” for the other guilty verdicts.

“By coming forward with her experience, Cassie has left an indelible mark on both the entertainment industry and the fight for justice,” he said.

“We must repeat – with no reservation – that we believe and support our client, who showed exemplary courage throughout this trial.”

Cassie, who testified heavily pregnant just three weeks before giving birth, displayed “unquestionable strength”, he added, and “brought attention to the realities of powerful men in our orbit”.

Videos of “freak off” sex sessions with male escorts were shown to jurors only during the seven-week trial, with the footage kept private from members of the public and media in court.

Read more:
How the trial unfolded
The rise and fall of Sean ‘Diddy’ Combs

Sean "Diddy" Combs listens as Assistant U.S. Attorney Meredith Foster questions Ananya Sankar during his sex trafficking trial
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Pic: Reuters/ Jane Rosenberg

Former employees, along with escorts, hotel staff and police officers were among those to give evidence.

Cassie and Jane, who used a pseudonym, also testified. They told the court they were coerced into drug-fuelled “freak offs” – which were also referred to as “hotel nights” or “wild king nights” – with male escorts, and abused throughout their relationships.

Combs’s defence team presented a very different picture to show that sexual acts, including freak offs, were consensual.

They conceded the music star could be violent, had a bad temper and used drugs. He also had multiple relationships at the same time. But crucially, they said, while he was “not proud” of some of his behaviour, none of it made him guilty of the charges against him.

After hearing evidence of flights and travel for escorts and Cassie and Jane, paid for by Combs, as well as hotel bookings across the US and the Caribbean, jurors found him guilty of the transportation to engage in prostitution charges. However, they did not find that the allegations against the rapper amounted to sex trafficking or racketeering.

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CCTV footage shows Diddy ‘attacking’ Cassie in hotel

The Cassie hotel tape

Combs, known variously as Puff Daddy, P Diddy, and Diddy over the years, was once one of the most influential figures in hip-hop – famous as a producer, founder of Bad Boy Records and manager of the late Notorious BIG in the 1990s, as well as a rapper in his own right.

As an artist, he won three Grammys during his career, and had hits including I’ll Be Missing You, Come With Me, and Bad Boy For Life.

In September 2023, he received the “global icon” award from MTV and was given the key to New York City at a ceremony in Times Square, just a few miles away from the streets in Harlem where he spent his first years.

Allegations first came to prominence in November 2023, when Cassie filed a bombshell lawsuit accusing him of coercing her into unwanted sex sessions, as well as blackmail and several incidences of violence.

The suit was settled in 24 hours – for $20m, it emerged during the trial – but months later CNN aired hotel security footage showing Combs punching and kicking Cassie and throwing her to the floor in 2016.

He apologised after the video aired, saying: “I was disgusted when I did it.”

Footage from the hotel incident was shown during the trial.

Following the verdict, the rapper now awaits sentencing. He also still faces several civil lawsuits, most of which were filed in the wake of his arrest in September 2024.

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Bryan Kohberger pleads guilty to murdering four University of Idaho students in 2022

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Bryan Kohberger pleads guilty to murdering four University of Idaho students in 2022

A man has pleaded guilty to murdering four University of Idaho students in November 2022.

Bryan Kohberger, a 30-year-old former criminal justice student, was arrested at his parents’ home in Pennsylvania weeks after the killings.

He was accused of sneaking into the rented home in Moscow, Idaho, which is not far from the university campus, and attacking Ethan Chapin, Xana Kernodle, Madison Mogen and Kaylee Goncalves.

Kohberger previously pleaded not guilty to charges of murder and burglary.

It comes after he agreed to a plea deal, just weeks before his trial was set to begin, in a bid to avoid the death penalty.

Read more:
Surviving Idaho student ‘saw masked man in black clothing’
Idaho suspect ‘warned after making creepy comments’

Bryan Kohberger during a hearing in Latah County District Court in Moscow, Idaho
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Bryan Kohberger during a hearing in Latah County District Court in Moscow, Idaho. Pic: Reuters

Kaylee Goncalves, Maddie Mogen and Xana Kernodle, and Xana's boyfriend Ethan Chapin
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Kaylee Goncalves, Maddie Mogen and Xana Kernodle, and Xana’s boyfriend Ethan Chapin

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Donald Trump’s ‘big, beautiful bill’ has sparked ugly debate – so why is it so controversial?

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Donald Trump's 'big, beautiful bill' has sparked ugly debate - so why is it so controversial?

It is certainly big – 940 pages long – but on the question of beauty, Congress is divided.

Donald Trump’s “big, beautiful bill” has sparked ugly debate – both for its ambitious scope and for the political manoeuvring that’s gone on around it.

Elon Musk branded it “political suicide” for Republicans and threatened to fund challenges against those who back it in next year’s midterm elections.

But the president hit back, suggesting he would consider cutting Musk’s lucrative government contracts or even deporting him back to South Africa.

The “big, beautiful bill”, or HR 1 to give the proposed legislation its proper title, is Mr Trump’s signature spending and tax policy.

It extends tax cuts he secured in 2017 and bankrolls his second-term agenda in the White House.

File pic: Reuters
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File pic: Reuters

Here is a summary of the key points:

Permanent tax cuts: Extending relief from the 2017 Tax Cuts and Jobs Act

Small business support: Doubling the small business expensing limit to $2.5m (£1.8m) to help businesses expand and hire staff

Child tax credit: Expanding the child tax credit and making it permanent, benefiting 40 million families

Making housing affordable: Expanding the low-income housing tax credit to kickstart construction of affordable homes

Defence and border security: Allocating $170bn (£123bn) for border security alone, including $46bn (£33bn) for completing the border wall

Made-in-America incentives: Providing tax breaks and incentives for domestic manufacturing to promote US industry

Healthcare and social welfare: Implementing restrictions on Medicaid, which provides healthcare for millions of Americans, and reducing funding for certain healthcare and nutrition programmes.

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Clash over ‘monster’ debt bill

Musk, Mr Trump’s former ally and the man who established the Department of Government Efficiency (DOGE), claimed the bill “raises the debt ceiling by $5trn, the biggest increase in history.”

“DOGE is the monster that might have to go back and eat Elon,” was President Trump’s response.

The national debt currently stands at $37trn (£27trn) and the Congressional Budget Office (CBO) estimates that the bill could add $2.4trn (£1.7trn) to that over the next decade.

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Trump threatens to ‘put DOGE’ on Musk

Bill splits Republican ranks

Republican Senator Thom Tillis voted against the bill and, following criticism from the president, announced he would not seek re-election in North Carolina.

He said he couldn’t support it due to his concerns about the impact cuts to Medicaid would have on people in his state.

Democrats in the Senate forced a full reading of all 940 pages and then a vote-a-rama, a series of marathon voting sessions.

Read more from Sky News:
Elon’s dad on the Musk-Trump bust-up
How Musk’s cost-cutting mission fell flat

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In the House of Representatives, it passed by a single vote, 215-214. In the Senate, Vice President JD Vance, had to cast the deciding vote to break a tie (50-50).

Legislatively, the progress of the bill has been a case study in the complexities of American law-making.

Strategically, it represents a mammoth effort to consolidate the president’s policy agenda and secure his legacy.

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