A lawsuit claims that Elizabeth Holmes owes more than $25 million to creditors

According to a lawsuit, Elizabeth Holmes has not repaid over $25 million to creditors of her former company, Theranos, as she attempts to delay her 11-year prison sentence. The lawsuit was revealed on Friday during a court appearance by Holmes. The lawsuit was not revealed on until Friday when Holmes appeared in court.

A lawsuit filed by Theranos ABC on behalf of its creditors claims that Elizabeth Holmes has not paid back any of the promissory notes totaling over $25 million. The suit was filed in December 2022 in the Superior Court of California in Santa Clara County but only became as World news when Holmes appeared in court on Friday.

The lawsuit claims that while serving as CEO of the now-defunct blood-testing company, Holmes signed three promissory notes as part of a breach of contract. Three promissory notes were issued, as follows:

  • A note for $9,159,333.65 in August 2011.
  • In December 2011, a note for $7,578,575.52 was issued.
  • A note for $9,129,991.10 in December 2013.

The complaint stated, “Despite demands for payment by Theranos ABC as the holder of the promissory notes, Holmes has not made any payments on account of any of the promissory notes.” The attorneys for Theranos ABC have not reacted in any way to this circumstance.

All about the lawsuit

According to the lawsuit, two of the promissory note payments were originally due in 2016, and the third was due in 2018.Theranos’ board of directors, which included Holmes, James Mattis, a former defence secretary, lawyer David Boies, Riley Bechtel, a former CEO of the Bechtel Group, and Richard Kovacevich, a former CEO of Wells Fargo, changed the conditions to prolong the notes by five years in July 2016.However, the suit alleges that the first two notes are now past due, and the third note is due in December.

Elizabeth Holmes, who is set to report to prison next month, appeared in federal court in San Jose, California, on Friday, seeking to delay her report date as she appeals her conviction. During the hearing, a man holding a lawsuit approached Holmes at her attorneys’ table, and he was eventually removed by marshals as he grew increasingly agitated. It is unclear if the man was a process server attempting to serve the suit on Holmes.

Verdict of January 2022

In January 2022, Elizabeth Holmes was found guilty by a jury on four counts of wire fraud and conspiracy. She was given the order to surrender and start her prison sentence on April 27, 2023. However, her attorneys have indicated that they plan to appeal her case to the Ninth Circuit Court of Appeals.

After being found guilty last year, Holmes gave birth to a second child. Her lawyer presented several reasons why she should not be considered a flight risk, including her young children and her track record of being on bail for over a year without absconding.

Despite Holmes’ lawyer citing her young children and her previous compliance with bail conditions, the government pointed out that Holmes and her partner had booked a one-way ticket to Puerto Vallarta, Mexico, just days after her conviction, raising concerns about her flight risk.

Additionally, Holmes is currently in a dispute with prosecutors over the amount of restitution she should pay, with the government seeking nearly $900 million while Holmes argues that investors did not rely on her representations.


Judge Edward Davila of the U.S. District Court is expected to rule on both motions in early April that will be out as World news. Elizabeth Holmes founded Theranos in 2003 after dropping out of Stanford University with the promise of revolutionizing the healthcare industry. However, the company was shut down in 2016 following a series of failed regulatory inspections and articles by then-Wall Street Journal reporter John Carreyrou.