RecordLens
Menu

Claim review. Fraud

Partly supported

A material part is supported, but the published wording goes beyond the record.

The SEC said in March 2018 that Theranos, its CEO and its former president carried out a massive fraud, and that the company was liable for it.

Charged With Massive Fraud
About
Theranos, Inc.
Claim made by
US Securities and Exchange Commission, regulator statement
Published
14 March 2018
Original
Theranos, CEO Holmes, and Former President Balwani Charged With Massive Fraud
Evidence score
83 How it was scored
Last reviewed
25 October 2026

Why this label

The SEC charged the company and two executives with fraudS1. That is an allegation. The words massive fraud appear in the SEC headline, and the body describes an elaborate, years-long fraud as alleged in the complaintS1. Theranos and Holmes agreed to settle but neither admitted nor denied the allegations, and the settlements were subject to court approvalS1. No court made a finding of fraud against the company. The criminal case supports part of the proposition. A jury found Holmes guilty of one conspiracy count and three wire fraud counts tied to investors, and acquitted her on patient related countsS2. Wording that treats the company as found liable goes beyond the record.

Current procedural position

SEC settlement with Theranos and Holmes, neither admitting nor denying, announced on 14 March 2018S1. Holmes criminal conviction affirmed in February 2025S3. The company was not the defendant in the criminal verdict we readS2.

Record supporting the assessment

small blood samples drawn from a finger stick
S2 Tier A US Attorney's Office, Northern District of California, Theranos Founder Elizabeth Holmes Found Guilty Of Investor Fraud, 4 January 2022
a federal jury convicted Holmes and Balwani of defrauding investors
S3 Tier C Courthouse News Service, Ninth Circuit denies Elizabeth Holmes' request for rehearing, 8 May 2025
Theranos and Holmes have agreed to settle the fraud charges levied against them.
S1 Tier A US Securities and Exchange Commission, Theranos, CEO Holmes, and Former President Balwani Charged With Massive Fraud, 14 March 2018

Conflicting or limiting record

neither admitted nor denied the allegations in the SEC's complaint
S1 Tier A US Securities and Exchange Commission, Theranos, CEO Holmes, and Former President Balwani Charged With Massive Fraud, 14 March 2018

Evidence score: 83 of 100

The score grades how well the record establishes this assessment. It is not a score of Theranos, Inc.. Score = source authority + directness + corroboration + procedural accuracy + currency + reproducibility.

ComponentPointsMaxReason
Source authorityIs the source competent to establish the proposition?2730SEC and US Attorney records are competent, with press for the appeal.
DirectnessDoes the source state the proposition or only discuss adjacent facts?1520The records state the charge and the settlement terms but not a finding against the company.
CorroborationDo independent records support the same material point?1215The criminal verdict corroborates the investor fraud core for an individual.
Procedural accuracyDoes the record settle the procedural state the claim describes?1015A no admit settlement for the company and a final conviction for one executive.
CurrencyHas the record been checked against later developments?910Checked against 2025 appeal rulings.
ReproducibilityCan a reader locate the passage and repeat the assessment?1010All sources are public.
Total83100

Timeline

  1. SEC charges and settlementsS1
  2. Verdict against Holmes announcedS2
  3. Ninth Circuit affirmsS3

Related cases

  • Securities and Exchange Commission v. Theranos, Inc. and Elizabeth HolmesUS Securities and Exchange Commission, action in the US District Court for the Northern District of California. Civil. Not published.Stage: Settled by Theranos and Holmes without admitting or denying, subject to court approval.
    • Settlement announced, including a US$500,000 penalty and a 10 year officer and director bar for HolmesS1
  • United States v. Elizabeth HolmesUS District Court for the Northern District of California, appeal to the US Court of Appeals for the Ninth Circuit. Criminal. Not published.Stage: Conviction affirmed in February 2025 and rehearing en banc denied on 8 May 2025S3. No clemency grant listed as of 20 October 2026S6.
    • Sentenced to just over 11 yearsS3
    • Rehearing en banc denied after February 2025 affirmanceS3

Revision history

  • Assessment first published with label Partly supported.

Have a record that changes this assessment? See corrections and responses.

Sources

  1. S2Tier A Theranos Founder Elizabeth Holmes Found Guilty Of Investor FraudUS Attorney's Office, Northern District of California. Government press release. 4 January 2022.Supports the counts of conviction and acquittal and the evidence on the device. It does not cover sentencing or appeal.Link working, checked 25 October 2026
  2. S3Tier C Ninth Circuit denies Elizabeth Holmes' request for rehearingCourthouse News Service. Press report. 8 May 2025.Report by Matt Simons on the rehearing denial and the February 2025 affirmance. It does not give the affirmance day.Link working, checked 25 October 2026
  3. S1Tier A Theranos, CEO Holmes, and Former President Balwani Charged With Massive FraudUS Securities and Exchange Commission. Regulator press release. 14 March 2018.Supports the charges, the company claims and the SEC's account of the device. The settlement is not a finding.
  4. S6Tier A Clemency Grants by President Donald J. Trump (2025-Present)US Department of Justice, Office of the Pardon Attorney. Government press release. Updated 20 October 2026.Official list of pardons and commutations since 2025, latest grant 13 October 2026. It lists no grant to Holmes or her former co-defendant. It does not show pending petitions.Link working, checked 25 October 2026

Other claims about Theranos, Inc.