Former Theranos COO Sunny Balwani sentenced to nearly 13 years in prison
Former Theranos chief operating officer and president Ramesh “Sunny” Balwani was sentenced to nearly 13 years in prison Wednesday for fraud, after the unraveling of the blood-testing juggernaut prompted criminal charges in California federal court against both Balwani and Theranos founder Elizabeth Holmes, who on Nov. 18 was sentenced to more than 11 years in prison.
During the sentencing hearing, attorneys for Balwani attempted to pin the blame on Holmes, telling U.S. District Court Judge Edward J. Davila that “decisions were made by Elizabeth Holmes.”
Davila had set a sentencing range of 11 years plus 3 months to 14 years, but prosecutors today sought a 15-year sentence given his “significant” oversight role at Theranos’ lab business.
The final guideline sentence was 155 months, plus three years of probation. Davila set a Mar. 15, 2023, surrender date.
Sunny Balwani, former president of Theranos Inc., arrives at federal court in San Jose, California, on Wednesday, Dec. 7, 2022.
David Paul Morris | Bloomberg | Getty Images
Balwani and Holmes, former romantic partners, helmed Theranos as the company enjoyed a meteoric rise, attracting backers ranging from the DeVos family to news magnate Rupert Murdoch. It was one of Murdoch’s publications, The Wall Street Journal, that first reported on irregularities with Theranos’ purportedly revolutionary blood-testing machines.
As COO, Balwani managed both the laboratory business and the financial aspects of the company. Theranos was marred with repeated failures during his tenure, including falsified documents and erroneous test results.
“I am responsible for everything at Theranos,” Balwani said in a message to Holmes. Balwani assumed broad responsibility for day-to-day operations at the company.
Theranos claimed the machines required just a few drops of blood to run and could execute more than 1,000 tests. In reality, the Journal reported the company could only process a little over a dozen tests. The Journal’s reporting eventually prompted the company’s dissolution in 2018 and, later, the arrest of Balwani and Holmes on fraud charges.
Balwani’s sentencing in federal court marks the end of the Theranos saga, which enthralled the public and prompted documentary films and novel treatments.
With a star-studded investor list, a captivating founder who drew comparisons to Apple’s Steve Jobs, and a potentially revolutionary technology, the company for a time represented the apex of Silicon Valley ingenuity.
The revelations about Theranos brought about a stunning fall from grace for both Balwani and Holmes, who were in a relationship for much of their tenure at the company. Holmes accused Balwani of abuse in court proceedings, providing text messages and contemporaneous notes from their relationship as evidence.
“Kill the old Elizabeth,” Balwani purportedly told her.
Balwani perpetrated a “decade-long campaign of psychological abuse,” Holmes’ lawyers argued. Balwani is nearly 20 years older than Holmes, who testified that he managed the lab and financial side of the business.
This is a developing story. Please check back for updates.
George Kurtz, chief executive officer of Crowdstrike Inc., speaks during the Montgomery Summit in Santa Monica, California, U.S., on Wednesday, March 4, 2020.
Patrick T. Fallon | Bloomberg | Getty Images
CrowdStrike shares fell 7% in extended trading on Tuesday after the security software maker issued a weaker-than-expected revenue forecast.
Here’s how the company did against LSEG consensus:
- Earnings per share: 73 cents, adjusted vs. 65 cents expected
- Revenue: $1.10 billion vs. $1.10 billion expected
Revenue increased by nearly 20% in the fiscal first quarter, which ended on April 30, according to a statement. The company registered a net loss of $110.2 million, or 44 cents per share, compared with net income of $42.8 million, or 17 cents per share, in the same quarter last year.
Costs rose in sales and marketing as well as in research and development and administration, partly because of a broad software outage last summer.
For the current quarter, CrowdStrike called for 82 cents to 84 cents in adjusted earnings per share on $1.14 billion to $1.15 million in revenue. Analysts polled by LSEG were expecting 81 cents per share and $1.16 billion in revenue.
CrowdStrike bumped up its guidance for full-year earnings but maintained its expectation for revenue. The company now sees $3.44 to $3.56 in adjusted earnings per share, with $4.74 billion to $4.81 billion in revenue. The LSEG consensus was $3.43 per share and $4.77 billion in revenue. The earnings guidance provided in March was $3.33 to $3.45 in adjusted earnings per share.
Also on Tuesday, CrowdStrike said it had earmarked $1 billion for share buybacks.
“Today’s announced share repurchase reflects our confidence in CrowdStrike’s future and unwavering mission of stopping breaches,” CEO George Kurtz said in the statement.
As of Tuesday’s close, the stock was up 43% so far in 2025, while the S&P 500 index had gained less than 2%.
Executives will discuss the results on a conference call with analysts starting at 5 p.m. ET.
WATCH: Trade Tracker: Malcolm Ethridge buys more CrowdStrike, Palo Alto Networks, Spotify and Oracle
An attendee wearing a cow costume while playing Mario Kart World by Nintendo Switch 2 during the Nintendo Switch 2 Experience at the Excel London international exhibition and convention centre in London on April 11, 2025.
Isabel Infantes | Reuters
Nvidia CEO Jensen Huang on Tuesday talked up the capabilities of Nintendo‘s new Switch 2, days before the long-awaited console is set to hit store shelves.
In a video posted by Nintendo, Huang called the chip inside the Switch 2 “unlike anything we’ve built before.”
“It brings together three breakthroughs: The most advanced graphics ever in a mobile device, full hardware ray tracing, high dynamic range for brighter highlights and deeper shadows, and an architecture that supports backward compatibility,” Huang said.
He added that the console has dedicated artificial intelligence processors to “sharpen, animate and enhance gameplay in real time.”
Huang’s comments come as Nintendo prepares to release the Switch 2 on Thursday. The Switch 2 is Nintendo’s first new console in eight years, and it is expected to be a bigger and faster version of its predecessor. The device costs $449.99.
Huang also paid tribute to the vision of former Nintendo CEO Satoru Iwata, who died before the original Switch was released.
“Switch 2 is more than a new console,” Huang said. “It’s a new chapter worthy of Iwata Son’s vision.”
WATCH: Nintendo expects to sell 15 million units of the Switch 2
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