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Theranos founder Elizabeth Holmes attorneys say they have not been paid



  • Elizabeth Holmes, the founder of the shameless blood-testing startup Theranos, has been in and out of court since the company's inaccuracies and deficiencies were exposed in 2015.
  • Last week, the lawyers defending Holmes against a class action lawsuit filed a motion to withdraw from representing her because they have not been paid for more than a year.
  • The attorneys say that given Holmes & # 39; current financial situation & # 39; they do not expect to be paid for their services, and it would be "unfair and unreasonable" for them to continue to represent her.
  • Visit the Business Insiders homepage for more stories.

Three lawyers defending Elizabeth Holmes in federal court are trying to close the case because they say the Theranos founder, once valued at $ 4.5 billion, has not paid them in over a year.

The attorneys, who work at the law firm Cooley LLP, have represented Holmes against a federal lawsuit over class actions brought by former Theranos patients who trigger blood tests from the startup gave inaccurate results and caused them to undergo unnecessary medical costs.

However, the attorneys last week filed a motion to withdraw as an attorney for Holmes. According to court documents, Holmes has not paid Cooley for his defense work "for more than a year." The law firm does not expect Holmes to "ever" pay it for services provided to her "current financial situations," documents say. Mercury News first reported on the lawyers' motion to resign as a lawyer.

Read more: Theranos founder Elizabeth Holmes faces jail for fraud charges. Her trial is set to begin in summer 2020.

The lawsuit was filed in 201

6 in Phoenix, where Theranos operated several blood-testing "wellness centers" from Walgreens stores in the area. Holmes – as well as Walgreens and Theranos, who are also named as defendants – have all denied wrongdoing in the case. No court date has been set.

The civil suit in question is separate from the one involving criminal charges exploited against Holmes, which could potentially lead to imprisonment. In that case, the Justice Department has indicted Holmes and Therano's former president, Sunny Balwani, for multiple counts of fraud. The charges stem from allegations that Holmes and Balwani – who concealed that they were romantically involved for much of the time they directed Theranos – intended to scam the startup investors, as well as the doctors and patients, while knowing the test results were inaccurate and unreliable.

The criminal case is set to begin in July 2020. Both Holmes and Balwani could face up to 20 years in prison, and a $ 250,000 fine plus restitution for each charge, the government has said.

The lawyers defending Holmes in the criminal case did not answer Business Insider's question whether they had been paid for their representation.


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