Theranos founder accused of bilking legal professionals in civil case

The founding father of scandalized blood-testing startup Theranos is now being accused of skipping out on payments owed to the legal professionals defending her towards fraud fees in a civil lawsuit.

Elizabeth Holmes, who ran Theranos till its 2018 collapse, hasn’t paid her Palo Alto, California, legal professional John Dwyer and his colleagues for the previous 12 months, in response to paperwork filed Monday in Phoenix federal court docket. The legal professionals wish to stop the case as a result of they do not ever count on to be paid. The paperwork cited Holmes “present monetary scenario” with out elaborating.

Dwyer did not instantly reply to a request for remark Friday. A message left for Holmes’ legal professional in a separate felony case in San Jose, California, wasn’t instantly returned. Holmes has pleaded not responsible to the felony fees of conspiracy and fraud in a case that’s scheduled to go to trial subsequent summer season.

A trial date hasn’t been set for the civil lawsuit filed towards Holmes, Theranos and Walgreens, which supplied Theranos’ blood-testing know-how in Arizona and California. The lawsuit was filed on behalf of shoppers who paid for Theranos’ blood testing service.

Holmes, a former Stanford College scholar, began Theranos in Palo Alto on the promise it had developed a method to carry out advanced blood evaluation with a finger prick. Federal authorities asserted that Theranos’ know-how did not work as marketed, duping each the corporate’s buyers and clients.