Former Theranos founder and CEO Elizabeth Holmes has appeared back in court without wearing her favorite black turtleneck, which she has already made famous.
The 35-year-old businesswoman arrived at a federal courthouse in San Jose, California this week for a status hearing. She is currently facing charges of wire fraud and conspiracy to commit fraud, along with ex-company president Ramesh "Sunny" Balwani.
Holmes showed up in a simple gray blazer and slacks with a light blue button-down shirt, which is quite a contrast to the polished black turtleneck she loved to wear before.
Her date in court on Monday marks the first time she has been seen in public following the release of HBO's The Inventor: Out for Blood in Silicon Valley, which documents Theranos' rise to prominence and its inevitable downfall.
Holmes is set to make another appearance in court on July 8, the proposed start date of her trial.
The Story Of Holmes And Theranos
Holmes founded Theranos in 2003 right after dropping out of Stanford University. Her goal was to provide consumers with cheaper and more efficient alternatives to conventional medical tests.
One of its promises was a simple diagnostic for cancer, diabetes, and other illnesses that only needs a few drops of blood to be effective.
Theranos soon became one of the most lauded "unicorn" tech startups in the industry, following what seemed like a series of good fortune for the company.
In September 2014, Forbes named Holmes as one of the richest women in the United States. The magazine said she owned as much as 50 percent of Theranos, which was valued at $9 billion at the time.
In December of the same year, Theranos successfully raised over $400 million in investments. Larry Ellison, cofounder and executive chairman of Oracle, was one of the many people who put in money into the med tech startup.
Theranos' Downfall
Theranos' momentum started to shift in a different direction by October 2015. That month, Holmes was even named one of the New York Times' "Five Visionary Tech Entrepreneurs Who Are Changing The World."
On Oct. 16, 2015, A Wall Street Journal article raised questions about how accurate Theranos' medical tests really were. The company had allegedly used traditional laboratory machines for the diagnostics instead of its own equipment.
A few days later, the Food and Drug Administration revealed numerous concerns about Holmes' company, claiming that its proprietary blood-collection vial has not been medically cleared.
In 2016, Theranos received a letter from the Centers for Medicare and Medicaid Services, telling the company that it was not following proper blood-testing rules set by the federal government and that it puts the safety of patients at risk.
Health regulators soon revoked the company's certification and banned it from operating a lab for two years.
Theranos later shut down its wellness centers and clinical labs, leaving more than 300 people without jobs. Holmes said the company would switch to developing automated testing machines instead.
Balwani announced that he was stepping down as president of the company in May 2016.
Holmes' estimated net worth dropped from $4.5 billion to $0, according to Forbes. Meanwhile, Theranos' valuation was significantly reduced from $9 billion to $800 million.
Several organizations sued the company, including pharmacy chain Walgreens for an alleged breach of contract, and former major investor Partner Fund Management for securities fraud. Both cases were later settled for undisclosed amounts.
In 2017, Theranos reportedly failed another regulatory lab inspection, forcing the company to close down the last of its blood testing facilities. It had also laid off an additional 155 employees earlier.
In March 2018, the U.S. Securities and Exchange Commission charged Holmes and Balwani with raising over $700 million from investors in an elaborate and years-long fraud scheme.
