Judge dismisses some charges against Theranos founder Elizabeth Holmes
© Getty Images

A federal judge on Tuesday dropped some of the charges against Theranos Inc. founder Elizabeth Holmes, but let wire fraud charges against her and former company President Ramesh “Sunny” Balwani move forward.

Theranos, which Holmes founded in 2003 at age 19, has seen the claims about its blood testing services slowly fall apart, beginning in 2015 with a damning series of Wall Street Journal articles on the company.

The judge in San Jose, Calif., overseeing Holmes's case ruled that because the tests were paid for through medical insurance companies, patients themselves were not deprived of any money or property, Reuters reported.


The court also found that there was not evidence to determine that Holmes and Balwani directed doctors to make misrepresentations to their patients but refused to dismiss wire fraud charges against the pair. 

Homes and Balwani allegedly encouraged doctors and patients to use the company’s services despite knowing that Theranos could not consistently produce accurate results for a variety of its tests.

The former executives were indicted in June 2018 on 11 counts of conspiracy and wire fraud. They have pleaded not guilty. In the same year, Holmes stepped down from the leadership of Theranos and agreed to pay a $500,000 fine to settle charges from the Securities and Exchange Commission.

U.S. District Judge Edward Davila ruled last year that the trial against the two will begin July 28.