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Disgraced Tech CEO plans unusual legal strategy




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Elizabeth Holmes is testing next year for criminal fraud, and Bloomberg reports that her legal team is working on an unexpected legal strategy. They go after journalist John Carreyrou, whose investigative pieces in the Wall Street Journal led to the rebellion of Holme's blood test firm, Theranos. Holmes plans to argue that Carreyrou not only reported on Theranos, but urged to file formal complaints against the company and exert influence "on the regulatory process in a way that seems to have twisted the agency's focus on the company and possibly biased the agency's findings against it," a lawsuit obtained by Bloomberg's Josh Rosenblatt.

The legal team essentially says that Carreyrou became part of the story he reported about, and fainted regulators to get down harder on the company then they would otherwise have it. However, Carreyrous reports. Meanwhile, a formal federal prosecutor told Bloomberg that the strategy could be dismissed in court as irrelevant ̵

1; because the case is about Theranos' allegedly false biotech requirements, not about Carreyrou. The trial will start in July 2020, with Holmes and former Theranos exec Ramesh "Sunny" Balwani facing 20 years in prison and fines of $ 2 million, per Journal . They may also have to pay a refund to those who invested in the company. (Read more Elizabeth Holmes stories.)

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