A federal judge has reduced Theranos co-founder Elizabeth Holmes’ prison sentence by one year, according to court documents obtained by Becker’s.
The reduction reflects a 2023 sentencing guideline change that grants leniency to first-time offenders convicted of certain nonviolent crimes.
Prosecutors argued Ms. Holmes should not qualify for a reduced sentence, as the guideline change does not apply to defendants who caused substantial financial hardship, and her fraud totaled more than $450 million.
In a March 26 court order, Judge Edward J. Davila of the Northern District of California disagreed, finding that none of Theranos’ investors were driven into financial hardship by their losses.
Ms. Holmes was sentenced to 135 months, or 11.25 years, in prison in 2022 after being convicted on four counts of wire fraud and conspiracy for misleading investors about the capabilities of Theranos’ blood-testing technology. The company claimed it could run more than 240 tests from a single drop of blood.
Ms. Holmes began her sentence in May 2023. The order reduces it to 123 months, or 10.25 years.
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