Attorneys for Theranos founder Elizabeth Holmes say she has not paid them
Elizabeth Holmes, founder and former CEO of Theranos, leaves federal court Wednesday in San Jose, California (Michael Short / Bloomberg News)
Elizabeth Holmes once topped a Forbes list of the world's youngest self- made female billionaires. Now, she reportedly can't pay her attorney's fees.
Three Cooley LLP attorneys representing the embattled Theranos founder in a lawsuit want the case, and wrote in court documents filed Sept. 30 that Holmes has not paid them for more than a year.
"Further, given Holmes's current financial situation, Cooley has no expectation that Holmes will ever pay it for her services as her adviser," wrote Stephen Neal, John Dwyer and Jeffrey Lombard in the filing, which was first reported by Mercury News . "Thus, it is unfair and unreasonable to demand that Cooley continue to represent Holmes in this action."
Holmes dropped out of Stanford University at 19 to form Theranos in 2003. The Palo Alto company vowed to revolutionize health care by requiring only a needle stick blood to run hundreds of tests. At its peak, it was valued at $ 9 billion and had a partnership with Walgreens.
The company's decline began in 2015 when an investigation by the Wall Street Journal revealed that the machines were not producing accurate results. By last year, Theranos had been shot and Holmes charged with fraud that could have up to 20 years in prison. The downfall of the once famous startup and its CEO has been chronicled in a documentary, a podcast and a bestselling book.
In the lawsuit filed in U.S. District Court in Phoenix, consumers accuse Holmes, Theranos and Walgreens of perpetuating a "massive scam." They also accuse Theranos and Walgreens of medically beating them by taking blood draws under "false pretenses." “Holmes, Theranos and Walgreens are fighting the accusations.
The judge has not yet ruled on Cooley attorneys' request to resign.
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