Lawsuit claims Elizabeth Holmes owes more than $25 million to Theranos creditors, report says

• Elizabeth Holmes owes collectors of her failed startup Theranos more than $25 million, CNBC reported.
• A lawsuit filed in December accused the previous CEO of lacking funds on three promissory notes.
• It emerged as Holmes appeared in court docket Friday in search of to delay her date to report back to jail.

Elizabeth Holmes owes collectors of her failed blood-testing startup Theranos more than $25 million, a brand new lawsuit claimed. 

The former CEO “has not made any payments on account of any of the promissory notes,” in accordance with CNBC.

The outlet obtained a replica of the lawsuit filed in December 2022 in the Superior Court of California in Santa Clara County by Theranos ABC, an organization arrange on behalf of collectors. 

According to the report, Holmes made three written guarantees to repay collectors whereas she was nonetheless CEO.

The first note for more than $9 million was written in August 2011, adopted by one value more than $7.5 million in December that year. A 3rd note was written in December 2013 for more than $9 million. 

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The two 2011 notes have been on account of be paid in 2016 whereas the third was due in 2018, per CNBC.

In July 2016 Holmes was given an additional 5 years by the Theranos board to make funds, the lawsuit said, which means the first two have been now overdue, whereas fee for the third was due by December. 

The lawsuit got here to mild after Holmes was approached in court docket in San Jose, California on Friday, CNBC reported. 

She attended a listening to that sought to delay the beginning of her jail sentence, set for April 27, whereas her attorneys appealed against her conviction, The Associated Press reported. US District Judge Edward Davila told the court docket he hoped to make a ruling by early April.

Earlier this month the same judge rejected a bid by Holmes’ confederate Ramesh “Sunny” Balwani, who’s dealing with near 13 years in jail, to keep away from jail. He was on account of report back to a federal jail in California on Thursday, however his lawyer was capable of create a delay, per The AP.    

After being discovered responsible of 4 fraud-related charges, Holmes was sentenced in November to more than 11 years in jail. She lodged an attraction in early December.

A court docket filing in February also revealed that Holmes had lately given delivery to her second baby and was in search of to delay her incarceration.

Prosecutors said the 39-year-old nonetheless confirmed “no remorse to victims” of Theranos and was living on an property costing $13,000 a month throughout her attraction, Insider reported. Prosecutors are in search of restitution of virtually $900 million for traders in Theranos, per The AP.

Lawyers for Holmes did not instantly reply to a request for remark from Insider, made outdoors regular working hours.