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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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Pizza delivery woman stabs pregnant customer over $2 tip, police say

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Pizza delivery woman stabs pregnant customer over  tip, police say

A pizza delivery woman stabbed a pregnant customer over a $2 tip, authorities in the US say.

Brianna Alvelo, 22, is charged with attempted murder after allegedly stabbing the woman multiple times at a motel in Kissimmee, Florida.

The victim, her boyfriend and her five-year-old daughter were staying at the Riviera Motel to celebrate a birthday and ordered Marco’s pizza on Sunday, according to a court document reported by Sky News’ US sister outlet NBC News.

Alvelo delivered the pizza which cost around $33 (£26) and was asked to provide change for a $50 bill but did not have the change, the affidavit said.

The woman then searched for smaller bills and in the end gave Alvelo a $2 tip.

Brianna Alvelo
Pic:Osceola County Jail
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Brianna Alvelo Pic: Osceola County Jail

She told police that some time later she heard a loud knocking on the door. A man and a woman wearing masks and all black forced themselves into the room when she opened the door, she said.

The man brandished a silver revolver and demanded that the woman’s boyfriend go into the bathroom and the other person, believed to be Alvelo, pulled out a pocketknife, the document said.

As the woman turned to shield her child she felt a strike on her lower back, she said.

She then “threw her daughter onto the bed and attempted to pick up her phone”, the affidavit said, but Alvelo grabbed it and smashed it.

Alvelo then “began striking her multiple times with the knife”, according to the affidavit. The man who had the gun then yelled it was time to go, stopping the assault, it said.

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The woman received 14 stab wounds and discovered she was pregnant while being treated in hospital.

Alvelo is charged with attempted murder, home invasion with a firearm, kidnapping and aggravated assault, according to court records.

A man alleged to have accompanied Alvelo during the incident has not yet been identified.

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Jay-Z’s lawyer warned by judge over ‘inappropriate’ actions as Sean Combs faces fresh lawsuit

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Jay-Z's lawyer warned by judge over 'inappropriate' actions as Sean Combs faces fresh lawsuit

The judge overseeing the case of a woman who says she was raped by Jay-Z and Sean “Diddy” Combs when she was 13 has criticised the “inappropriate” behaviour of Jay-Z’s lawyer.

In a written order, Judge Analisa Torres hit out at Alex Spiro for what she described as his combative motions and “inflammatory language” against the plaintiff’s lawyer, Tony Buzbee.

Mr Spiro – who has been acting for Jay-Z for around three weeks – previously called for the Alabama woman’s identity to be revealed. She is currently identified only as “Jane Doe”, a US legal term to say she is anonymous.

The Manhattan judge has said she can proceed anonymously at this stage but may be required to reveal her identity at a later date.

Combs remains in a Brooklyn jail awaiting trial on federal sex trafficking and racketeering charges. He has pleaded not guilty.

He is facing a wave of sexual assault lawsuits, many of which were filed by Texas lawyer Mr Buzbee, who says his firm represents more than 150 people, both men and women, alleging sexual abuse and exploitation by Combs.

The lawsuits allege many individuals were abused at parties in New York, California and Florida after being given drugged drinks.

Combs’ lawyers have dismissed Mr Buzbee’s lawsuits as “shameless publicity stunts, designed to extract payments from celebrities who fear having lies spread about them, just as lies have been spread about Mr Combs”.

Jay-Z, whose real name is Sean Carter, previously said in a statement that Mr Buzbee was trying to blackmail him to settle the plaintiff’s allegations.

Mr Buzbee said in an email that his firm does not comment on court rulings.

Music mogul and entrepreneur Sean 'Diddy' Combs arrives at the Billboard Music Awards, May 15, 2022, in Las Vegas. Pic: Jordan Strauss/Invision/AP
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Sean ‘Diddy’ Combs was named alongside Carter in the lawsuit. Pic: AP

In her lawsuit, the woman claims Jay-Z and Sean Combs raped her when she was 13 after the MTV Video Music Awards in 2000.

Both men strenuously deny the allegations.

Mr Spiro has previously asked the judge to dismiss Jay-Z from the woman’s lawsuit.

Citing an interview the plaintiff did with Sky’s US partner NBC News, Mr Spiro wrote that the broadcast revealed “glaring inconsistencies and outright impossibilities” in the plaintiff’s story.

The woman has admitted inconsistencies, saying she had “made some mistakes”, but standing by her allegations overall.

Judge Torres wrote in her order on Thursday that Mr Spiro had submitted a “litany of letters and motions attempting to impugn the character of Plaintiff’s lawyer, many of them expounding on the purported ‘urgency’ of this case”.

She added: “Carter’s lawyer’s relentless filing of combative motions containing inflammatory language and ad hominem attacks is inappropriate, a waste of judicial resources, and a tactic unlikely to benefit his client. The court will not fast-track the judicial process merely because counsel demands it.”

She said Mr Spiro – who had accused the plaintiff’s lawyer of having a “chronic inability to follow the rules” – had failed to follow the rules himself. She warned him against future “unacceptable” behaviour.

Sky News has contacted Mr Spiro for comment.

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There are ‘hundreds’ more

Sean Combs faces fresh lawsuit

Meanwhile, in a new lawsuit filed on 20 December, a woman has accused Combs of drugging and sexually assaulting her in 2006 at a New York party, which she attended after winning a radio station contest.

The woman, who was 23 at the time, said she felt sick and fell unconscious after being served two premade drinks by waitresses, later waking up in hospital with a ripped shirt, missing underwear and shoes, and no recollection of how she got there.

The suit said the woman was left with pain in her vagina for around a week, which she believed was from rough intercourse.

She also said an unknown woman with a New York number later called her, allegedly threatening her to keep quiet.

Combs’ attorney has called the allegations “pure fiction”.

As well as Combs, the woman is also suing Bad Boy Entertainment Holdings, which Combs founded; Atlantic Records, which she said facilitated the event; Mike Savas, a promoter for Atlantic at the time; Delta Airlines, which flew her to New York; KKJamz 105.3, the radio station she said held the contest; and the Roger Smith Hotel, where she stayed.

Ten “John and Jane Does” are also listed as defendants.

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Trump criticises Biden’s death row decisions – saying he backs capital punishment for ‘rapists, murderers, and monsters’

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Trump criticises Biden's death row decisions - saying he backs capital punishment for 'rapists, murderers, and monsters'

Donald Trump says that when he takes power next month he will direct the US Justice Department to “vigorously pursue” the death penalty.

The US president-elect, 78, said he would do so to protect Americans from what he called “violent rapists, murderers and monsters”.

Mr Trump was responding to President Joe Biden’s decision to commute the sentences of almost all federal inmates on death row – whom Mr Trump called “37 of the worst killers in our country”.

“When you hear the acts of each, you won’t believe that he did this. Makes no sense,” Mr Trump posted on his social media platform Truth Social.

“Relatives and friends are further devastated. They can’t believe this is happening!”

He continued: “As soon as I am inaugurated, I will direct the Justice Department to vigorously pursue the death penalty to protect American families and children from violent rapists, murderers, and monsters.

“We will be a Nation of Law and Order again!”

President Biden, 82, announced on Monday that he would reduce the sentences of 37 of the 40 federal death row prisoners to life in prison without the possibility of parole, saying he was “guided by my conscience and my experience as a public defender”.

The three others the president did not spare are Robert Bowers, who fatally shot 11 people at a Pittsburgh synagogue in 2018; Dylann Roof, who gunned down nine black churchgoers in Charleston, South Carolina, in 2015; and Dzhokhar Tsarnaev, who carried out a 2013 bombing at the Boston Marathon that killed three people and injured almost 300 others.

(L-R) Robert Bowers, Dylann Roof and Dzhokhar Tsarnaev
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(L-R) Robert Bowers, Dylann Roof and Dzhokhar Tsarnaev

‘I condemn these murderers’

Despite sparing the lives of 37, Mr Biden added: “Make no mistake: I condemn these murderers, grieve for the victims of their despicable acts, and ache for all the families who have suffered unimaginable and irreparable loss.”

During Mr Trump’s first term in office between 2017 and 2021, the US Justice Department put 13 federal inmates to death.

He has since said he would like to expand capital punishment to include child rapists, migrants who kill US citizens and law enforcement officers, and those convicted of drug and human trafficking.

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Joe Biden on 16 December 2024. Pic: Reuters
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Pic: Reuters

Mr Biden, who ran for president opposing the death penalty, put federal executions on hold when he took office in January 2021.

His latest decisions come after a coalition of criminal justice advocacy groups, former prosecutors and business leaders wrote letters to the White House asking for Mr Biden to commute the sentences ahead of Mr Trump’s inauguration on 20 January.

Pope Francis also appealed to Mr Biden, who is Catholic, to reduce the sentences to imprisonment.

Unlike executive orders, clemency decisions cannot be reversed by a president’s successor, although the death penalty can be sought more aggressively in future cases.

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